Infinity Developments Liverpool Limited

Infinity Developments Liverpool Limited (the “Company“), a specialist purchase vehicle incorporated for the ‘Infinity’ development located in the business district and historic waterfront of Liverpool, entered administration on 19 March 2020. David Rubin and Paul Cooper of David Rubin & Partners were appointed as Joint Administrators.

The Company was incorporated in March 2017 as a member of the Elliott Group. Planning permission was obtained for three blocks of 39, 33 and 27 storeys, respectively, to provide approximately 1,000 residential units.

The Company engaged with sales agents, who would market Infinity to sophisticated individual investors (“Investors“) who would purchase specified individual flats ‘off plan’ within the planned development. Investors would then enter a conveyancing transaction whereby they paid a deposit used by the Company for the build costs.

The Company ran into financial difficulties after bribery and corruption allegations were made against Elliott Lawless, the sole Director of the Elliott Group, Although the investigation did not relate to this property and no charges were brought, the lender who had provisionally agreed to advance the development funding to the Company withdrew its offer because of the investigation.

The Company entered into a short-term loan facility with Equity Group Limited, but this proved to be insufficient and the Company subsequently entered into talks with the Investors to raise funding to restart the development. However, it was clear that the damage caused by the police investigation was irreversible as it was not possible to secure the further funding that was required.

The main focus of the administration has been to secure and sell the Infinity development. Approximately 12 months ago, an offer was received from Legacie View Limited (“Legacie“) for a cash bid to the estate in the sum of approximately £6million, which was accepted.

An application to approve the sale was scheduled for January 2022, but was adjourned after an offer from a group of Investors, through Infinity Developments Propco Limited (“Propco“), was received. The Joint Administrators ultimately concluded that the Propco bid offered a marginally improved return to the non-participating Investors, and the offer was accepted.

The Court approved the sale and the Joint Administrators and Legacie reached agreement on the termination of the prior sale contract which did not have the approval of the Court. The Joint Administrators returned the deposit held to Legacie.

The Joint Administrators and their legal representatives then entered into further sale negotiations with Propco and their legal advisors in drafting the proposed sale contract.

The sale has now been completed. The cash element of the deal was £2.5m, with around £3.4m of the originally invested cash carried over. Overall, the deal to acquire the site was valued at around £5.9m.

Solicitors from Ingram Winter Green assisted the Joint Administrators.

The Joint Administrators’ Progress Report can be found HERE.