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Unfinished Student Block Developers Owe Buyers £23.9m

Posted by Calum Martin in ,

Image courtesy of Flickr, Creative Commons

The redevelopment in Liverpool city centre intended on transforming the former National Express bus station into a large £45m student accommodation block.

Mount Group Student NatEx Ltd, which was behind the major student accommodation scheme, fell into administration following increasing costs from Covid and supply chain issues caused by Brexit. Administrators Mazars clarified the administration was only in respect of Mount Student Natex Ltd, and did not relate to any other companies in the wider Mount Group.

Once complete the scheme had hoped to feature 574-beds made up of mixed clusters and studios, as well as large social spaces, a gym and communal study areas. This was to be delivered across 16 and 10-storey towers.

Mount Property Group had purchased the New Islington-based NatEx scheme from Welsh company Anwyl back in 2018.

A report delivered by administrators Mazars revealed that the company had accepted £23.9m from buyers in the form of deposits.

The majority of buyers, which have not received unilateral notices, are owed £18,660,119. The second group of buyers, which have received UN1s, are owed £4,974,666.

The administrators report detailed some of the background leading to the collapse of the company. It read: "The company began to experience problems in April 2020 as the impact of Covid 19 pandemic and the national restrictions imposed by the UK Government began to have an effect on the construction industry, resulting in delays in construction progress on the property."

A spokesperson for the Mount Property Group stated: "Mount Group Student NatEx Ltd went into administration following the collapse of the funder LT Prime. However we still hope to deliver the NatEx Ltd through a CVA (Company Voluntary Arrangement route)."