City Lofts puts assets in receivership

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by Lin Freestone

A major residential developer has become a victim of the credit crunch following the placement of 250 unsold apartments into receivership.

City Lofts Group Ltd, which has its headquarters in Harrogate, has been placed into administration after being adversely affected by the difficult market conditions in the UK.

City Lofts’ biggest lender, Bank of Scotland Corporate, has appointed John Gershinson of Allsop as LPA receiver on the unsold units in Manchester, Nottingham, Leeds, Liverpool, Cardiff and Birmingham.

The company has also been planning to develop a site in Sutton Coldfield since January last year. The proposals were for 295 apartments and 66,500 sq ft of commercial space on the site, which was acquired from the Cala Group in 2005. The future of the development is now in doubt.

City Loft Developments was founded in 1996 and has established a considerable reputation as one of the UK’s leading residential and mixed-use property developers. A long-standing relationship with leading design company Conran and Partners enabled City Lofts to pioneer some award-winning refurbished and new build schemes.