Cara Investments Limited (05115908): administration
- Status
- Administration ended
- Administration began
- 2011-12-08
- Incorporated
- 2004-04-29
- Location
- London
- Industry
- 7011
Why it went into administration
- Property / lease costs
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company was incorporated on 29 April 2004 to serve as a vehicle of the purchase and development of 58 High Street, Manchester, M4 1EA (“the Property”) as residential apartments Bank funding was arranged through Dunbar Bank plc (“the Bank”, now Dunbar Assets plc) and the Property was purchased with pre-existing planning and Conservation Area consent for approximately £1 million The initial budget for the development was £1 31 million
By late 2005 the Company was experiencing financial difficulties and the Bank provided funding for the buyout of the Company by Hugh Patrick Carson, the sole current Director A new contractor, RCCS Construction, was brought in to complete the development, with a budget of £1 16 million, and work commenced tn January 2006 with the intention of completing the development in 2007
In May 2006, the development was suspended following allegations that the Quantity Surveyor had not been attending the site and the Company appeared to have made overpayments to the contractor on the basis of inaccurate valuations The Property was mothballed and as the contractor had left liabilities with advisors and payments were suspended, funds were not available to protect the fabric of the building from the elements The resultant damage caused the costs to increase again when work recommenced in May 2008
Administrators' statement of proposals (2012-03-26) · Companies House register