海角视频

Furious investors in a city centre apartment scheme fear losing tens of thousands of pounds each after the scheme stalled and ran out of money before a deal was agreed to buy it.

Life savings, retirement funds and inheritance worth up to 拢900,000 are now feared lost by investors in the second phase of the Parliament Residence scheme, a Baltic Triangle development led by London-based Assetcorp.

The investment vehicle behind the project to deliver almost 150 鈥渉igh-end鈥� waterfront apartments, called AC Parl Street 2 Ltd, went into receivership last year. It鈥檚 now close to being bought by prominent city developer Legacie, .

But a deal to buy the scheme will not necessarily mean the investors, who are mostly from the 海角视频 but with others based across the globe, will ever see their money again.

That鈥檚 because AC Parl Street 2 Ltd took out large loans from a number of companies - latterly a firm called Collateral Investments Ltd. According to a 鈥榥otice of appointment of an administrative receiver鈥� document filed with Companies House, that Manchester-based firm appointed the receiver at the end of last year.

Investors have told BusinessLive they were 鈥渟hocked鈥� at how fast their savings could vanish - and that they were 鈥渒ept in the dark鈥� by Assetcorp and the financial problems the scheme faced - alleging that the company failed to provide details of any loans being taken out.

They also allege that Assetcorp did not disclose information to investors - and asked them for forward funds to complete the scheme - just days after the receiver had been appointed to try and sell the business.

The development, for which units were sold off-plan, is said to be around 鈥�70%鈥� complete and in a 鈥渄angerous鈥� condition.

Investors do not blame the new owner Legacie, or David Currie, the receiver who was appointed to AC Parl St Ltd.

They now want to highlight the dangers of schemes like these for other uninformed investors.

Peter Hopkisson, a teacher from Kent, had a total of more than 拢170,000 invested in the development.

He said: 鈥淲e wanted to invest in a flat in an up and coming area which would also serve as a base for our two daughters who both went to Liverpool Medical School.

鈥淥ne is now working as a junior doctor in a city hospital and we thought the Baltic Triangle would be a great place for her to start her professional life."

He said at 鈥渘o stage鈥� from the start of the project in 2017 until the end of November last year were investors informed of serious problems.

He added: 鈥淲e can accept projects running into difficulties but the speed with which events unfolded have left a very bad feeling about the whole system from start to finish.

鈥淚t will be soul destroying to see the building finished thinking about what should have been. We feel totally let down.鈥�

He said he now wants to see fractional development models 鈥渇ully regulated鈥�, starting with scrutiny of developers鈥� funding, clear conveyancing guidelines and transparent processes.

鈥淲e believed we were fully protected but this seems not to have been the case. We will now take steps to achieve legal redress.鈥�

It鈥檚 the latest controversy surrounding the fractional sales model to hit Liverpool.

Over the past few years, the Liverpool Echo and BusinessLive have reported extensively on various failed or stalled city schemes where investors, many from the Far East, have feared losing their life savings due to failed developments.

Work began on the second phase of Parliament Residence in 2018, with millions of pounds pumped into the scheme by investors based all over the world - as far afield as China, the Middle East and USA.

It's set to deliver 145 one and two-bed apartments in the middle of the Baltic Triangle.

Investors in the scheme worth more than 拢20m allege they were not informed by Assetcorp that any difficulties or problems had arisen - and accused the firm of trying to 鈥渓ure鈥� additional monies.

An email seen by BusinessLive sent in early December by Assetcorp鈥檚 managing director Stuart Johnson promised investors that building work would restart on January 7, and asked for payment towards completion costs, saying it would cost 拢3.8m to finish.

In a section laying out difficulties with the build including Covid infections and vandalism hitting the site, the letter to investors added: 鈥淲e must emphasise that the scheme is still viable and fully solvent. The funding gap shortage does not put the scheme into a position of insolvency.鈥�

It added that the firm was 鈥減urely interested鈥� in delivering the apartments with no losses - despite it being 鈥渁t a commercial loss as a company鈥�.

The email was dated December 2, despite Companies House documents showing that David Currie had been appointed as a receiver for AC Parl St 2 Ltd just days before - on November 27. That move was in the hope of finding a buyer to recover Collateral鈥檚 investment.

Mr Hopkisson added: 鈥淚t鈥檚 disgusting that Assetcorp and its [managing director] kept investors in the dark about financial problems while their building went on sale and bidders were invited to view it.鈥�

A second man, an 鈥渆xperienced鈥� investor who asked to remain anonymous, said he stands to lose 鈥渙ver 拢900,000鈥� plus added market value.

He said: 鈥淭hat took a lifetime of hard work and smart investing. Our plan was to retire early, and use the income generated from the property.

鈥淚 was going to give a flat to each of my children. My daughter was looking to study in Liverpool.

鈥淧lans now have to change, retirement is not going to be early. I鈥檓 looking at another 10-plus years of hard work and recovery.鈥�

It was the first time this individual had invested in off-plan property in the 海角视频, but he had a stern warning for anyone thinking of doing the same.

鈥淚 won鈥檛 be doing this again and my advice to others is to stay away. I鈥檓 feeling pretty angry with myself for getting into this mess.

鈥淭he lesson learned is don鈥檛 buy anything that doesn鈥檛 yet exist.鈥�

He said he was disappointed investors had not been given an opportunity to 鈥渙rganize and take over the project鈥�, and that news of the sale was 鈥渟udden鈥�.

鈥淲e have all been let down. Our contracts had no protections, we were poorly informed.

鈥淟ets hope there is some justice in the 海角视频 and this is not business as usual."

Another investor, Luis Demelo, from Luxembourg, had invested his life savings - a total of 拢166,950 into the scheme - an amount that due to a serious illness, he will never be able to save up again.

Mr Demelo described his situation: 鈥淧ersonally, if I鈥檓 unable to get the money back, I will have lost 20 years of my savings that I won鈥檛 be able to recover as I have a serious chronic disease and my life expectancy is reduced. Also, my daughter won鈥檛 go to the University of Liverpool and I will leave her no financial support as I鈥檓 a single parent.鈥�

He urged Legacie to work with him and others, to complete the development with existing investors - 鈥渆ven if that costs us a little extra money鈥�.

A fourth investor, aged 60, said he had saved up the money by working in four countries.

He explained: 鈥淚 thought to put all my savings into investment so my children could go to school. The eldest wants to be a doctor. He got a scholarship to study biochemistry at the University of Arizona.

鈥淚 put the entire money in this Parliament Residence phase 2. Total investment so far is 拢73,000.鈥�

A fifth investor told BusinessLive she had invested her pension and was 鈥渄evastated鈥�.

There is now hope that Legacie will be able to 鈥渇ind a way to help investors鈥� - although it鈥檚 not known how that might happen.

A sixth investor expressed optimism, saying: 鈥淚 hope Legacie is not only rescuing the building but will follow through their call to make this sector better regulated by finding a way to help the investors.

鈥淚t is shocking after so many people trusted in Liverpool that all of them found it so easy for their savings to disappear.鈥�

When contacted for a comment by BusinessLive last week, Legacie Developments confirmed it was close to securing the deal for the second phase of Parliament Residence.

A spokesman said: "We have put in a bid to rescue this development. It is currently in a dangerous condition from the damage that has been caused once the site stalled and requires significant investment, and the support of Legaice's expert team, to bring it to standard.

鈥淥ur vision is to create a quality residential development on this site so that Liverpool is not left with another stalled scheme. Legacie has a track record of delivery in Liverpool and so we hope to revive this project to make it something the city can be proud of."

When the ECHO put investors鈥� concerns to Legacie this week, the firm said it would be inappropriate to comment further.

Further attempts were made to contact Assetcorp and Mr Currie.