Administrator RSM UK Restructuring Advisory has appointed Knight Frank and Savills to market the 88-home Kew Waterside site, near Kew Gardens station in west London, for offers over £15m, according to market sources.
The site’s previous owner, Melliss Ave Devco, received planning permission for the redevelopment of the site to provide a four- to six-storey specialist extra-care facility for the elderly with existing health conditions, comprising 88 homes and communal healthcare, therapy, leisure and social facilities, including a restaurant, bar, café and swimming pool.
The vehicle had acquired the 1.7-acre site in 2017 for £13m, with a senior debt facility from Greenoak UK Secured Lending and mezzanine debt from Beaufort Ventures.
Planning permission for the site was granted on 15 September 2020 and was required to be implemented by 15 September 2023.
According to a notice of administrator’s proposal published on Companies House, Melliss Ave Devco secured funding from Octopus Real Estate and a debenture was secured against the company in its favour in June 2021. The loan also allowed Greenoak and Beaufort to be paid in full.
Knight Frank and Savills were initially appointed to raise funds for the development of the site in December 2021. The duo were later instructed to market the site when an additional funding search proved unsuccessful.
The agencies marketed the site for sale in February 2022 and received interest from 12 parties, with offers ranging significantly in value. However, with the financial uncertainty following the mini-Budget in September 2022, no acceptable offers were received.
Following the failure to secure additional investment or proceed with an acceptable sale, Melliss Ave Devco began to default on its loan repayments to Octopus.
Octopus filed for the appointment of receivers on 6 July 2023.
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