Investors ‘losing sleep’ over delays to flats in old mill
FOREIGN investors are suffering ‘sleepless nights’ because of a troubled Manchester property development.
Buyers of ‘off-plan’ apartments at Empress Mill, at Empress Street, Old Trafford, were promised generous profits on rents. But, a year-and-a-half past deadline, the conversion, on the outskirts of the city centre, is still not finished.
Now Charlie Cunningham, a 38-year-old developer linked to the scheme, has had his assets frozen by the High Court.
Mr Cunningham, who was at school with Prince William, is being held liable for nearly £15m of funds from investors in Empress Mill and other projects.
Buyers in the Far East – Malaysia, China, Hong Kong, Macau and Taiwan – plunged money into Empress Mill. Convinced by a 10-year guarantee of an 8.5 per cent return, the average buyer forked out around £95,000 for their flat.
Investors bought off-plan – which means before they were built – believing they were getting a better deal on a buy-tolet. But work stalled after one of the companies involved with the scheme, Absolute Living Developments Ltd (ALD), went into liquidation in April 2016.
Now, five penthouse apartments remain unfinished. Another 33 were left in poor condition forcing some buyers to spend thousands on refurbishing them. Buyers claim they have been asked for more money to complete the scheme - or face the building being closed and millions being lost.
Despite this, most of the properties have been let and occupied. Trafford council has confirmed it has received a string of complaints about the building’s condition.
One buyer said: “I am deeply disturbed by the problematic investment in Empress Mill. I can hardly sleep for many months as I stand to lose my lifetime saving. I spent many months reporting the case to the various UK authorities but no one seems to care mainly because we are overseas buyers.
“Other victims and I have totally lost faith in the UK property market as there are no laws to protect overseas investors.”
The liquidator, Louise Brittain, alleges money linked to Empress Mill and other developments has been ‘wrongfully diverted’ to other companies. One of them – DS7 – is linked to Mr Cunningham, an Old Etonian property developer.
In a statement, Mr Cunningham told the Manchester Evening News he denies any wrongdoing and intends to fight the High Court’s freezing of his assets. The High Court ruling prevents him removing up to £14.5m in assets out of the country, but allows him £1,000 a week in living expenses and another £10,000 for legal advice.
Speaking on behalf of DS7, Mr Cunningham says he intends to fight the ruling.
He said: “DS7 categorically refutes all claims and allegations made by Louise Brittain and it will challenge this injunction.
“DS7 is currently preparing its case. In doing so, it has absolute confidence in the legal system to arrive at the truth.”
Two others named in the freezing injunction are Salford businessmen Andrew John Camilleri and Phillip Wright.
A spokesman for the local authority said: “This development is well-known to Trafford council, along with its inherent construction issues.
“The penthouses that are partially constructed on the roof are unoccupied and not of a habitable standard, as they have been open to the elements for a considerable amount of time. There is also inadequate safe access to this area of the development.
“In regards to the common areas of the development, such as the walkways and staircases, there is an incomplete permanent staircase structure that the developer is fully aware of.
“There is a temporary staircase structure that was installed to enable the building to be reoccupied following the collapse of the original staircase in high winds in 2014.
“The council issued a written report to the developers which confirmed there were unacceptable and incomplete building works on the development that required their attention in order to complete the mill building.”