PL Parkview Limited (11046735): administration
- Status
- Administration ended
- Administration began
- 2022-12-20
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2017-11-03
- Location
- London
- Industry
- 68100 Buying and selling of own real estate
Why it went into administration
- Creditor pressure / legal action
- Cash flow / liquidity pressure
- Management failings / irregularities
From the administrators' statement
In late 2016, the Director was introduced to a development opportunity at Parkview, Great West Road, Brentford, London TW8 9AZ (“the Property”). This involved the conversion of an existing office block into residential apartments, together with a gym and cinema. Berkshire Asset (West London) Limited (“BAWL”) was incorporated on 5 April 2017 as a joint venture to purchase and develop the Property. Given the size of the project, it was necessary to obtain equity and debt financing to complete the development. The Company was, therefore, incorporated as a special purpose vehicle through which to invest into BAWL for funding the development. The Company invested funds of £2.151 million into BAWL and a further ten investors provided the balance of the investment of 21.75 million. The two largest Shareholders were Cara Investments GmbH (“CIG”) and Wood Investments Limited (“WIL”) with shareholdings of 35.1% and 20.9% respectively. The Director, alongside the Directors of CIG and WIL, were appointed Directors of BAWL.
The day-to-day management of BAWL was conducted largely by the Director and SW4 Services Limited, which provided, inter alia, professional services pursuant to a Development Management Agreement. The construction work was carried out by ARJ Consiruction Limited and ARJ Construction Holdings Ltd (“ARJ”) pursuant to a JCT Design and Build contract agreed between BAWL and AR4J in late 2018. BAWL and ARJ took out insurance for the Property and the development. Upon subsequent advice from insurance brokers, it was recommended that additional cover be taken out for business interruption and terrorism. This cover was added to the policy upon renewal in November 2019.
On 1 January 2020, there was an escape of water through a sprinkler pipe at the Property, which caused a substantial amount of damage to approximately 40 apartments and communal areas of the Property. Consequently, BAWL and ARJ made claims with its insurers under the insurance policy. However, the claim was rejected by the insurers on the grounds of a failure to disclose a material change in circumstances at the time of the policy renewal in 2019. This followed it coming to light that criminal charges had been filed in Malaysia against three entities and its principal members of staff in relation to a multi-million dollar fraud. One of those entities was a firm of which the Director of WIL was also a director at the relevant time. Notwithstanding a settlement being agreed and the proceedings discontinued, the insurers maintained that the policy was void as a result of non-disclosure.
Administrators' statement of proposals (2023-02-18) · Companies House register