Administrators Called in for Failed Scheme

Reports indicate that owners behind an empty block of student flats in Plymouth are unlikely to get their money back.

Plymouth (Notte Street) Ltd, which built the PBSA went out of business in 2019, with almost £8million owed to creditors.

The accommodation is said to contain defects that could cost millions to put right, whilst a decline in the building's valuation will likely lead to a loss for the lender.

Crescent Point was initially valued at £30million in December 2019, but administrators at business consultants BDO LLP have suggested the vacant property is worth much less.

The scheme was due to open in 2018 but did not due to a legal row over some of the rooms being built too small.

The administrators intend to sell the scheme, however, only the secured creditor Longbow is likely to receive any cash.