The future of the £46m on-site Carter’s Quay project is unclear following Inland collapse
Bournemouth, Christchurch and Poole (BCP) council has said it will enter talks with Inland Homes’ administrators in a bid to salvage a 161-home development it was in the process of building in Poole.
David Hudson and Philip Lewis Armstrong of FRP Advisory were appointed by Inland Homes as joint administrators on 4 October after the troubled former AIM-listed developer announced it had breached banking covenants.
Inland had signed a £46m deal with BCP council in 2021 to build phases 4, 5 and 6 of the Carters Quays Scheme, scheduled to deliver 161 build-to-rent homes, having constructed three earlier phases.
These latter three phases were considered ”strategically important to the Council to enable it to meet its Housing Targets and to support the wider regeneration of Poole”, according to a council report.
BCP paid £8.25m to Inland Homes at the start of the project, which included payment for the land. Since then, the council has paid a further £6.75m for work achieved on the project so far.
However, the council said that so far just foundations, preparatory and boundary works, including works to a sea wall, have been completed, with none of the vertical build in place.
BCP states that the sale agreement means that Inland Homes is obligated to complete the build and then transfer the properties to the council. It also states that the council has the right to enforce these obligations.
Councillor Vikki Slade, leader of BCP council said: “A large amount of work has been done behind the scenes to keep this project moving forward and our team intend to liaise closely with the joint administrators to ensure the best possible outcome for the development, and the best value for our residents.”
The council entered into a Sale Agreement contract with Inland Partnerships Ltd, one of Inland Homes’ subsidiaries, in November 2021.
The collapse into administration of Inland came after Inland Homes said at the start of the year it expected to post a loss of £90m for 2022. Inland also admitted to breaching a series of loan convenants in February, including HSBC and Secure Bank Trust, for which the AIM-listed developer secured waivers. However, on 27 September, Inland said it had still not secured a waiver from HSBC regarding a further £13.6m loan covenant breach. On the same day, Inland filed for administration.
Inland’s administrators FRP has been contacted for comment.