Topic: Dodgy Liverpool Developments

[Spongebob Redpants]

Good piece in The Grauniad today about the failed developments in Liverpool ( and the wider NW region ). Doesn't reflect well on the council at all , which is putting it mildly .

Some pretty disgusting individuals make comment in the article .

Link to article is below - it's a longish read but worth the effort :

https://www.theguardian.com/cities/2018/mar/13/buyer-funded-development-scandal

[Medellin]

Will read up on that later cheers..

Isn't there an iffy development on Shaw st/Netherfield rd next to where the Campion school was?
Heard rumours about it.

[redbyrdz]

New Chinatown and similar projects.

[gazzam1963]

Will read up on that later cheers..

Isn't there an iffy development on Shaw st/Netherfield rd next to where the Campion school was?
Heard rumours about it.

Isnt that next to the collegiate , went past there to do a job the other day and seen these half built block with sandstone cladding to fit in with the collegiate . Then read an article about a company called primesite ( I think) edit just had a quick look at the article and it's pinnacle  and it's one of them common schemes now were buyers fund build costs in stages and then own an apartment that is rented out to guarantee them a return .

You pay 20% upfront then another 60 at certain stages then 20 % upon completion , the idea being the last 20% is the developers profit . Apparently out of the first tranche of 20% a huge wedge of it was sent to a company linked to the builder for " commission and marketing purposes " and the building arm didn't have enough to fund completion and went bust .

Peter kilfoyle does a few good articles on it about the various developers and there links to each other on twitter , will have a read of the article later .

[Spongebob Redpants]

You pay 20% upfront then another 60 at certain stages then 20 % upon completion , the idea being the last 20% is the developers profit . Apparently out of the first tranche of 20% a huge wedge of it was sent to a company linked to the builder for " commission and marketing purposes " and the building arm didn't have enough to fund completion and went bust .

Even worse than that - below is a snippet from the article outlining the funding :

Along with many others, Leung said she was wooed at a lavish promotional roadshow at a hotel in Hong Kong and convinced to pay 80% of the price of a student flat upfront, with promises of 6% interest on her deposit, followed by guaranteed 9% returns in rental income once the project was finished. Months later, buyers received requests for further funds to complete the building, before North Point Global announced it was stopping work all together – and couldn’t refund the buyers’ deposits.

[CraigDS]

Anyone willing to invest their money in such a way is asking for trouble. Whilst the blame is clearly on the crooks running these companies, people need to have a bit more nous about them, and that if a deal seems so good it's either because it's pretty dodgy or the risk is pretty high.

[Spongebob Redpants]

Anyone willing to invest their money in such a way is asking for trouble. Whilst the blame is clearly on the crooks running these companies, people need to have a bit more nous about them, and that if a deal seems so good it's either because it's pretty dodgy or the risk is pretty high.

Indeed , summed up in the article thus :

“It’s an incredibly risky form of investment,” says Clifford Tibber, expert in property law at Anthony Gold solicitors. “Very often the developments are not legitimate ... Developers are bypassing banks and targeting unsophisticated individuals who are willing to throw their life savings at a chance of making big profits.”

[Medellin]

Isnt that next to the collegiate ,

Yep thats the one, i did hear that was an asset frozen/taken from illegal means or money laundering.
Probably just another chocolate bar from the far east!
*chinese wispa.

[owens_2k]

I received an email about this recently from rw-invest.com:

RW Invest are very excited to announce the release our latest exclusive development located within Liverpool’s up and coming Fabric District. 

 The Fabric District Residence is perfectly situated with short walks to Liverpool Lime Street Station, the Brand New £335m University Hospital and the Vibrant City Centre.

 The vision is for the Fabric District to become a thriving mixed-use destination, where start-ups can work alongside established family businesses and people of all ages can live and enjoy an eclectic mix of shops, bars, restaurants and public art.

 
Key Investment Highlights

Luxury Residential Studio Apartments
8% NET for three years
Supported by Regeneration Liverpool

They provided a PDF information guide too. 5% reservation deposit, 50% within 21 days, 25% when property is "sectionally complete" and 25% on "Practical Completion"

[Momos_righteye]

Millions squandered here, council need to have a look at themselves in this as well, who thinks Liverpool needs all this student accommodation?

[CraigDS]

Millions squandered here, council need to have a look at themselves in this as well, who thinks Liverpool needs all this student accommodation?

Are they lying empty?

[gazzam1963]

Are they lying empty?

Your right Craig there’s big demand and it’s not just students it’s the private rental sector too , you can’t to my knowledge or it’s very limited buy a new build in city centre to actually live in yourself there all an investment
Strategy . These ones all guaranteeing rental returns are from the rent don’t think after the initial guarantee period you can opt to move in . It will be interesting if that’s the case what returns will be given when the five years or whatever period expires .

[CraigDS]

Yeah it seems the demand is huge for private rental. Just around where I'm renting they are building a 278 apartment 31 storey tower, a 105 apartment 16 storey tower, a 304 apartment 34 storey tower and a 230 apartment 13 storey tower. A tad further out and there is the triple tower Infinity project which consists of 1,002 apartments in 27, 33 and 39 storey towers, as well as the huge warehouse at Stanley Dock which is being converted at the moment.

Those are just the committed projects too around the Liverpool Waters area, they have space for shitloads more too.

[Tsar Kastik]

Graphic from the article, click to enlarge.

[cdav]

Something has to be done about crooks like these who set up shell companies, start the development and rake in fees to pay to associated companies owned by the same peole, then go bust and start again with a new shell company.

The council's due diligence over these deals were shambolic at best, corrupt at worst.

[Red Beret]

Will read up on that later cheers..

Isn't there an iffy development on Shaw st/Netherfield rd next to where the Campion school was?
Heard rumours about it.

It's almost bang opposite where I live.  I believe the same company was building the block on the site of the old Odeon on London road too.  Oddly enough even though that is clearly incomplete the upper stories are occupied.

It's utter bullshit how Liverpool keeps bending over for these charlatans. 

[CornerFlag]

Might get the popcorn out and head on over to the SkyScraper City forums.

[Pistolero]

[Tsar Kastik]

Find this pretty interesting,

https://www.google.com/maps/d/viewer?mid=1atchF4biejtix2gzucFcUNEE2A4&ll=53.40597936590125%2C-2.9704354074358434&z=14

[Spongebob Redpants]

Find this pretty interesting,

https://www.google.com/maps/d/viewer?mid=1atchF4biejtix2gzucFcUNEE2A4&ll=53.40597936590125%2C-2.9704354074358434&z=14

Aye , it is . Where did you come across that ?

[Spongebob Redpants]

You forgot your tag !

[Tsar Kastik]

Aye , it is . Where did you come across that ?

It was from Twitter this morning.