Consultant instructed to market City Lofts’ assets

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by Lin Freestone

Property consultant Allsop has been instructed to market six of the UK schemes of City Lofts Group, which went into administration in July 2008.

Jon Gershinson, the appointed receiver, has appointed Allsop to dispose of the predominantly residential developments in Leeds, Cardiff, Liverpool, Newcastle, Nottingham and Salford.

The total number of units involved is 901. Of these, 668 have been sold on long leases and 233 units are either let or vacant, and have a combined guide price of £29.5m.

Offers are invited for the portfolio of six investments or for individual investments, subject to contract.

Admiral House in Cardiff is a freehold former office building comprising 167 flats, with total ground rental income of £41,700 per annum and total rental income of £161,280 per annum.

In Leeds, Roberts Wharf is a head leasehold grade II listed building comprising 198 flats together with vacant shell ground floor space. Total rental income is £50,760 per annum, and total ground rent income is £47,500 per annum. Offers over £2.37m are being sought for the head leasehold interest.

Springfield Mill, Sandiacre, Nottingham is a freehold grade II listed building comprising 105 flats and total rental income of £462,955 a year. The total ground rent income is £4,400 per annum. Allsop is inviting sealed bids for the property of £7.2m or more.

Liverpool’s Princes Dock is a head leasehold purpose-built development comprising 162 flats together with vacant shell ground floor office/retail space. Ground rent income is passed on in its entirety to the freeholder and the total rental income is £105,200 per annum.

Quayside Lofts in Newcastle Upon Tyne is a freehold purpose built development comprising 66 flats together with two vacant shell ground floor retail/office units. Total ground rent income is £11,500 pa, with total annual rental income of £151,200.

Finally, the Quays in Salford is a freehold purpose-built development comprising 203 flats. Total rental income is £173,100 per annum, with total ground rent income of £45,500 a year.

City Lofts Group was the first major UK residential developer to become a victim of the credit crunch. Difficulties at the company emerged in July when around 250 of its unsold properties were placed into receivership. Based in Harrogate, the business was formed in 1996 and specialises in residential and mixed-used developments.