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Derby Scheme Placed Into Administration

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

The development company behind a 326-bed scheme in Derby has been placed into administration.

Prosperity Cathedral View Development was placed into administration earlier this month, with Opus Restructuring & Insolvency taking over the day-to-day running of the company.

The firm had been facing financial pressures due to a delay in completing the scheme in 2019, which resulted in a lower than expected rate of occupancy. The scheme was due to be sold, but this fell through late last year.

With the business facing cashflow issues, the developer breached its funding facility and subsequent attempts to refinance the project were unsuccessful. Coupled with the Covid-19 outbreak, the company advised the majority funder they were unable to meet financing requirements and were to place the company into administration.

The administrators have expressed their intention to sell the development and will continue to market the accommodation for the 2020-21 academic year.

Administrators Colin Wilson and Trevor Binyon at Opus Restructuring & Insolvency say they are working closely with the chargeholders, the directors and the management company to ensure the facilities remain fully functional whilst considering the wellbeing of the students currently in residence.