A restructuring deal for the Xchange House refurbishment project in Bradford has been completed by business advisory firm Quantuma.
The restructuring and refinancing deal safeguards the Xchange House development, a project to turn the Bradford city-centre commercial building into 126 flats.
It follows the administration of developer Pinnacle (Bradford) Limited last year.
The deal transfers the long leasehold into a new special purpose vehicle (SPV) controlled by the original investors, allowing them to appoint new developers to complete the project, with completion expected within the next six months.
Quantuma was appointed as administrators of Pinnacle (Bradford) Limited, part of the Manchester-based Pinnacle Group, after the construction company ran out of funds in 2017.
The firm worked with investors, lenders and the landlord to negotiate a sustainable deal to restructure and refinance the Xchange project.
On average, investors had placed between 50 and 80% of the sales value as a deposit in the scheme, which they had stood to lose had the development been subject to a forced sale.
Simon Campbell, Joint Administrator and Director at Quantuma, said: “This deal has been delayed due to the complexity of drawing together the interests of the landlord, secured creditors and over 100 investors.
“Importantly, investors now have control over the development with the prospect of a fully-refurbished property as originally intended.
“Our team has worked tirelessly to rebuild the trust of all stakeholders, and I would like to thank the many professionals who came together to drive this deal through to completion. We should see development work re-start shortly.”
Niall Monks, Director of the Xchange Development Company 2018, said: “The project has outstanding potential, and we look forward to completing the construction and welcoming residents to the building in 2019.
“A limited number of apartments will soon be offered for sale as well, and we feel confident that they will be in high demand.”