Empire Property Development Holdings Limited, a developer with several major projects, entered administration in April 2024, creating considerable concerns for investors involved in its developments. Key projects affected by this include:
- Ringway/Cuthburt House, Newcastle
- Globe Works, Bolton
- Bayer House, Newbury
Empire Property Development Holdings Limited is currently in liquidation. Additionally, its director, Timothy Rothwell, has two other related businesses now in administration: Featherfoot Cuthbert House Limited and Featherfoot Globe Limited.
These projects encompass a combined total of 487 apartments, and many investors now face uncertainty regarding the status and security of their investments.
Background: Professional Negligence and Unregulated Investment Schemes
Specters is currently representing investors in a professional negligence claim related to investments made with Empire Property Development Holdings, which may qualify as collective investment schemes. Investors were initially approached by investment agencies and encouraged to make substantial deposits. These agencies frequently recommended specific solicitors or conveyancers to handle the purchase process. However, during the conveyancing process, legal representatives failed to disclose that the investments could constitute an unregulated collective investment scheme or similar structure.
In many cases, investors were advised to pay unusually large reservation fees and deposits, which were transferred directly to the developer. Solicitors and conveyancers involved did not warn investors about the risks associated with such deposits, including the risk of significant financial loss if the developer entered administration.
What Does This Mean for Investors?
Empire Property Development Holdings’ move into administration in April 2024 has raised the possibility of project delays, reduced property values, or even complete losses of investment for those involved. While the full impact of the administration is still emerging, affected investors are understandably concerned about their financial exposure and potential recourse.
Pursuing Professional Negligence Claims
It is essential for impacted investors to recognise that they may have viable legal options. Professional negligence claims can be pursued when it appears that a legal or financial advisor failed in their duty to provide competent and comprehensive advice. In the case of Empire Property Development Holdings, investors may feel that they were not adequately informed about the inherent risks or were led to believe their investments were more secure than they actually were.
For investors who purchased units in Empire Property Development Holdings, there is the option to consult with our legal team. Our professionals have extensive experience handling professional negligence cases within the real estate and property development sectors. We are prepared to discuss potential “No Win, No Fee” agreements to assist investors in pursuing claims related to this matter.
If you are an affected investor, we encourage you to reach out to our team to explore the best course of action for safeguarding your interests.
