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Plymouth Student Flats to Open After £11m Purchase

Posted by Calum Martin in

Image courtesy of Flickr, (View licence)

A "ghost" block of purpose-built student accommodation flats is set to open for the 2022/23 academic year after being purchased in a deal worth £11m.

The development, which is situated in Notte Street, was originally pinned for opening in September 2018 however due to a long-running legal battle was never opened to students.

Originally called the Crescent Point towers, the scheme has been renamed Saltwater Place after its purchase by an unnamed buyer in February.

The Homes for Students brand Prestige Student Living are set to let out the scheme in the coming academic year.

Saltwater Place is comprised of two towers of 12 and 15 storeys in height and cost approximately £20m in its construction. It is set to house 348 students however none have moved in so far.

As well as the student beds, the development contains a ground-floor commercial space which is currently also unoccupied.

The lender of the accommodation, ICG Longbow, has been left out of pocket by more than £20m and it has been reported that there is no money to pay £8m owed to unsecured creditors.

Legal battles at the site began once it was revealed some of the rooms were constructed too small.

Freehold owners Plymouth (Notte Street) Ltd, part of the Harouni Group, went into administration in November 2019.

Several legal battles relating to the development have been ongoing since its construction. In 2019, Mears Ltd v Costplan Services (South East) Ltd, Plymouth (Notte Street) Ltd, JR Pickstock Ltd was heard by the Court of Appeal.

Action was taken by Mears Ltd after it emerged 56 rooms were more than 3% smaller than they should have been, and the only way to remediate would have been to demolish the building and start again. The court found that whilst there was a breach of contract, it was not deemed "material".