Birchen House Ltd (09876449): administration
- Status
- Administration ended
- Administration began
- 2017-06-09
- Administrators
- Lila Thomas, Steven John Williams
- Administrators' firm
- FRP Advisory
- Incorporated
- 2015-11-17
- Location
- Preston
- Industry
- 68100 Buying and selling of own real estate
Why it went into administration
- Bad debts / customer insolvency
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company was incorporated in November 2015 as a special purpose vehicle with the purpose of acquiring the Property. The Property is situated on the junction of Hamilton Square, Bridge Street and Cleveland Street, adjacent to Hamilton Square Station, in Birkenhead town centre. The Property comprises a former five storey office building, extending to approximately 3,807 sqm constructed behind the period fagade of the former Pier Hotel.
The Company purchased the Property for £1.21m in December 2015 with acquisition and development finance initially provided by Hope Capital. Hope Capital secured its debt by taking a mortgage of the Property and a debenture over all assets of the Company.
The Company planned to supplement funding for the development works through the use of deposits received from individual unit purchasers on exchange of contracts of the individual unit sales. This appears to have been a term of the standard contracts entered into with unit purchasers.
Administrators' statement of proposals (2017-09-05) · Companies House register