Lomaxfind Limited (08018599): administration
- Status
- Administration ended
- Administration began
- 2017-04-28
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2012-04-03
- Location
- Liverpool
- Industry
- 68320 Management of real estate on a fee or contract basis
Why it went into administration
- Property / lease costs
From the administrators' statement
Lomax Student Halls is a 120 ensuite bedroom student accommodation block located in Stoke-on-Trent. The development was built, and is still retained, by Primesite Developments Limited (“PSDL’) via its wholly owned subsidiary special purpose vehicle ("SPV"). Lomaxhallsco Limited (‘LHC’), with funding being provided by the Company from joan note investors. Construction commenced in September 2012, with a targeted compietion date of September 2013, in time for the student intakes from both the University of Staffordshire and Keele University. However, a number of significant contractor failures led to a spiralling overspend, significant delays, partial completion and large scale recovery works. The resulting financial loss was not only limited to construction costs, but also to a range of knock on costs, with one such example being the additional professional services required to stabilise delivery of the project and consider lost rental income. Prior to this point, the overall delivery of the project had been aided by a successful fundraising exercise, albeit at a large finance cost (approximately 15% of gross proceeds). Despite the hindrances, the building was finally delivered in …
and the costs of sabotage and substandard works. -3The History
The site, known as the former ‘Lomax’ nightclub on Hill Street, Stoke-on-Trent, ST4 INS, was acquired under contract by LHC in April 2012 for £825,000, subject to planning permission. An initial consideration of £500,000 was paid in July 2012, with the final balance of purchase consideration being paid by January 2013. Planning permission was granted for 120 student accommodation units in October 2012. The acquisition and development of the site was budgeted to cost a total of £6m, a figure inclusive of all fees, overheads and profit for PSDL. On this basis, a total fund raise of £6m via the Company was sought by LHC.
Administrators' statement of proposals (2017-07-04) · Companies House register