Specters are investigating possible claims against solicitors and conveyancers arising from the failed Liverpool development project Kingsway Square.
Kingsway Square was earmarked as a new residential development in the heart of Liverpool, comprising over 300 apartments. It was marketed by a developer called Source Development Group. Unfortunately, the project was never finished. Indeed, it appears that only limited groundworks were ever undertaken.
The company set up to act as the special purpose vehicle for the project, Kingsway Square Limited, has gone into administration, meaning the project is effectively dead in the water.
Kingsway Square Limited appeared to have two main sources of finance, these being 1) a development finance provider (i.e. a lender), and 2) hundreds of members of the public who paid deposits to reserve off-plan apartment units.
The lender held a first charge over the company’s assets, meaning that in the event the company was wound up, their loan would be paid off in full before the deposit holders saw any money.
At the time of administration, the company’s only remaining asset was the development site, valued at approximately £3 million. Unfortunately, the value of the lender’s outstanding loan is £5.5 million. After the land is sold to cover the lender’s loan, there will be no more assets to cover the lost deposits. It is looking unlikely that regular investors will recover anything from the administration of Kingsway Square Limited.
Specters has seen examples of the legal advice given to some of the investors by solicitors acting in the purchase the off-plan units in Kingsway Square. We believe the advice fell well short of what we would expect to see for such a risky and uncertain project. Investors may be able to claim their deposit back in an action against their former solicitor or conveyancer if the advice is adjudged to have been unreasonable or negligent.
If you have lost money in the Kingsway Square development, please feel free to call Specters on 0207 251 9900 or make an enquiry to discuss whether you have a claim.
