Urban Splash sells off 654 homes for £77m in major shake-up
Struggling developer Urban Splash has announced an extensive restructure and the sale of 654 flats, including Will Alsop’s Chips apartment block in Manchester
The North-West based regeneration specialist, which posted increased losses of £15.4 million earlier this year (AJ 03.01.2013), has also sold completed schemes in Bradford, Leeds, Stalybridge and Bristol to social housing landlord Places for People in a deal worth £77 million.
But Urban Splash’s future development sites, including the Ancoats Dispensary and the plot formerly earmarked for the Tutti Frutti homes in New Islington, Manchester, will not be transferred.
The developer has also been retained as property managers for the sold portfolio.
Urban Splash’s chairman and co-founder Tom Bloxham said: ‘The sale of this portfolio marks a significant turning point for Urban Splash, and the funding from it will be used to reduce debt while our corporate restructure will allow us to undertake future development projects.’
The corporate overhaul will see the creation of a new holding company called Urban Splash Holdings Limited and a new management company, Urban Splash Management Limited, as well as a number of new asset-holding subsidiaries.
According to Bloxham, the new management company and the asset-holding companies ‘are entirely free from bank debt and will be the entities via which Urban Splash will undertake new projects going forward; both on their own and in joint venture partnerships’.
He concluded: ‘It has been a tough five years… [but] We are pleased that we have now been able to undertake a corporate restructure and place individual properties and relevant debt into new legal entities.’
‘This restructure, sale of the residential portfolio and setting up of a sales and management agreement with Places for People signals the start of a new beginning for us.’