DeTrafford’s Gallery Gardens - Case Update

Kerry Bailey and Lee Causer of BDO, the joint administrators of the companies behind DeTrafford’s “Gallery Gardens” — a 366-unit residential development in Manchester’s Castlefield district — are seeking Court approval to sell the scheme to Drum Development Group. Drum became the first ranking secured creditor in the administration after purchasing the debt of CBRE as agent for Daiwa.

DeTrafford (Regiment) Limited and DeTrafford Gallery Gardens Block A Ltd entered voluntary administration on 31 January 2023. Several other DeTrafford schemes, including Wavelength and City Gardens, collapsed around the same time.

A disposal strategy was agreed with the secured creditor and in June 2023 Roger Hannah was instructed as property agent by the joint administrators to explore potential interest in the development to a select number of parties. Several offers were received, including an offer from Drum which was recommended by Mr Hannah.

The property titles owned by the companies are encumbered by 72 unilateral notices registered against the development. Drum’s offer was conditional on the notices being removed, which cannot be done without Court order. Therefore, the joint administrators have have brought an application to approve the sale. The hearing is scheduled for 15 March.

Drum is the only creditor expected to receive a return — Maslow Capital, the unilateral notice holders and other creditors will receive nothing.

The joint administrators have been assisted by Sanderson Weatherall and TLT. Read their proposals here.