Freshstart Living, Empirical Property Group, Summerberry Residences Bradford Charlie Cunningham They are at it again? Manchester United Kingdom
http://summerberryresidences.com/
Freshstart Living was selling investment units at Colonnade House, 201 Sunbridge Road, Bradford BD1 2HQ. It turned out to be a disastrous investment for many as can be seen by numerous postings on the Internet. It was also a nightmare for all the students who were suddenly left without accommodation and had to move out when the fire authorities moved in.
When the bad publicity came they changed the name of the building to "The Fort". This property is now being marketed to investors under the new name of Summerberry Residences. Does anyone know if this is still the same outfit? I WOULD SAY YES
9 Updates & Rebuttals
User2161301
Other,Hong Kong
Prime Noble Properties : Viewpoint Salford : Absolute Living Developments
#10Consumer Comment
Tue, December 20, 2016
Rotherham Development linked to Dubious Investment Schemes
Work is slow on a housing development in Rotherham town centre with development companies wound up and even linked to protests in Hong Kong by worried investors.
Revised plans to convert the historic Howard Building into self-contained studios and apartments were approved by the planning board at Rotherham Council in 2015.
The prominent former college building was sold prior to going to auction after it was advertised as a development opportunity and given a guide price of £250,000 by local auctioneers, Mark Jenkinson & son.
With little evidence of the conversion into twelve, one bed apartments and 60 studio apartments at "Howard Residencies", applicants, AVRO Developments headed into insolvency, with Rotherham Council leading the petition in 2015 to have the company wound up.
Financial documents link AVRO Developments to DS7 Limited which has acted as a lender to Absolute Living Developments, Fresh Start Living and Empirical Property, all highlighted in the media as leaving buy-to-let investors out of pocket.
Similar schemes in Manchester, Bradford and across the North of England were sold off plan to investors with the promise of decent returns, but the work was never completed and companies were wound up and projects moved on in complex deals. In some cases where some work was carried out, tenants were left with exposed electrical wires, a leaking roof, an illegal gas connection, a car park strewn with contaminated waste and an open sewer pipe.
The Telegraph & Argus reported this year that police in Hong Kong are conducting an international investigation into Liverpool-based Absolute Living Developments, which had been part-way through three apartment projects in Bradford when it was placed in compulsory liquidation. Overseas investors fear they have lost their money paid in deposits.
Howard Residencies is currently being offered as an investment opportunity by Crown Union (located at a virtual office in London and shares directors with companies linked to the Howard Building and DS7 Limited). It is offered as an "Ideal purchase for investors looking at UK Buy To Let's as a way of getting onto the first rung of the property investment ladder. From dynamic apartment layouts to classic period façade and stonework surrounds, this redevelopment brings together Rotherham past and present to create a truly unique place to live for post-graduates, young professionals & key workers."
Starter pads and 1 bed apartments are being offered at £49,950 and £69,950 with an 8% ROI per annum.
http://www.mirror.co.uk/news/uk-news/freshstart-living-shut-down-high-2919959
http://www.thetelegraphandargus.co.uk/news/14908996.Investigation_into_developer__39_s_collap %20%20se_continues_as_number_of_people_alleging_de ceptio%20%20n_grows/
http://www.thestandard.com.hk/section-news.php?id=170660
http://dmh.plcdn.com/wp-content/uploads/2016/01/dmh_howard_web.pdf
Crown Union website
http://www.crown-union.com/item/howard-residences/
by Tom Austen http://www.rothbiz.co.uk/
User2161203
Other,Hong Kong
DS7 Ltd, DS7 Limited, Charles Charlie Cunningham, Fresh Start Living
#10Consumer Comment
Sat, October 08, 2016
Investment firm takes on Bradford city centre flats scheme at centre of Hong Kong police probe into previous developer's collapse
Olicana House in Little Germany which has a new owner following the collapse of a development firm
A COMPANY has taken over a flats scheme thrown into doubt when a developer went bust, owing millions to overseas investors.
Manchester-based investment firm DS7 has taken on former council office Olicana House, in Chapel Street, Little Germany, where a project to create 138 apartments was left half-finished by the collapse of Absolute Living Developments (ALD).
Hong Kong Police are investigating ALD’s collapse, which left overseas investors millions of pounds out of pocket.
Investors had been buying the flats at Olicana House and elsewhere as buy-to-let investments but staged protests in Hong Kong after the firm went into liquidation.
Now, DS7 has applied for planning permission to create 19 further bedsits within the building, in areas which would otherwise have been reserved for storage.
Documents show DS7 had been a lender to ALD for six projects, including Olicana House and nearby Alexander House, in Bolton Road, where another flats scheme is also unfinished.
DS7 lists itself as the owner of Olicana House in its planning application.
The application says: “The new use, 19 extra apartments, will help to regenerate the area and aid the original goal: to bring back into use the vacant building with a new use that will guarantee its future sustainability.”
DS7’s director is listed as Charles Alexander Clunie Cunningham in official documents.
Mr Cunningham was also a director of another development firm working in Bradford, Fresh Start Living, which went under in 2013.
Fresh Start Living had been behind the plans to turn former Provident Financial base Colonnade House in Sunbridge Road into flats - a scheme which was later taken over by Absolute Living Developments and is now called Summer Berry Residences.
DS7 did not respond to requests by the Telegraph & Argus for a comment about the application.
Claire Wilde, Bradford Telegraph & Argus
Flatliner
Other,Hong Kong
Absolute Living Developments, Daniel Mark Harrison, DMH & Co Singapore
#10Consumer Comment
Thu, August 25, 2016
Appointment of Liquidators
ABSOLUTE LIVING DEVELOPMENTS LTD
(Company Number 08766275)
Registered office: Chichester House, Chichester Street, Rochdale, Lancashire OL16 2AU
Principal Trading Address: Chichester House, Chichester Street, Rochdale, Lancashire OL16 2AU
Notice is hereby given in accordance with Rule 4.106 that I, Louise Mary Brittain, of Wilkins Kennedy LLP, Gladstone House, 77-79 High Street, Egham, Surrey, TW20 9HY, (IP No: 009000) was appointed Liquidator of the Company on 21 July 2016. Creditors who have not proved their debts must forward their proofs of debt to me.
Further details contact: Guinevere Ellis, Email: guinevere.ellis@wilkinskennedy.com Tel: 01784 435561.
Louise Mary Brittain, Liquidator
21 July 2016
Mary Chan
Other,Hong Kong
DS7 Limited, Absolute Living Developments, Daniel Mark Harrison
#10Consumer Comment
Mon, December 14, 2015
The Mill / Orchid Point property in Trafford, UK developed by ALD /FSL
The property is sold by Absolute Livings Development Ltd (ALD)sold with a 10 year net rental guarantee of 8.5% p.a. and the rentals for the first 2 years are used to offset the selling price. The sales agent called Hong Kong Homessaid no need to pay ground rent or service charges for the first 10 years because ALD will pay. The sales brochure also says 8.5% net minimum annual rental return. The development project is called The Mill with 38 units, 33 3bedroom duplex flats and 5 penthouses. Most units were sold by HKH in 2014.
The buyers are mostly from Hong Kong and in Oct 2015 received solicitors letters asking payment of ground rent and service charges for 2014 and 2015. ALD did not reply to any queries as if disappeared. No quarterly rent account statements was ever produced. Edwen Yew resigned as director 30 Aug 2015 and transferred all the share to a Mr Leong. He appeared to still play an active role. At the same time, ALD sent a few emails to all unit buyers to offer the sale of freehold and mentioned that by paying for the freehold, unit buyers will not have to pay the ground rent any more. ALD changed ownership again in Dec 2015 to DMH & Co by Daniel Mark Harrison. The lease was sold by a company called FSL Properties Empress Mill Ltd and the management company named in the lease is called Orchid Point Management Company Ltd. The management agreement was with ALD. ALD Property projects sold by Hong Kong Homes have similar or completion problems, Summerberry Residences, Olicana.
When pressured by groups of buyers, Samson Law said he would resolve the problems with Charles Cunningham and Tim Ackrel (using their DS7 emails).
The unit buyers afraid they may not get the rental after the 2 year guaranteed period even if give the 60 days notice under the management agreement because ALD appears to have disappeared. The 5 penthouse units are not yet completed because no work was done for over a year and the main staircase to enter the block is said to be unfit for people walking so there may be fire and safety compliance. Not sure the duplex design may meet the safety requirement. When paying for the initial deposit, the buyers were told by Hong Kong Homes they would get a specified free car park. Later, they were told such car park was not available but replaced by a right to park outside the building.
From past reportings on the news, the companies concerned(Empirical, FSL) have similar directors Charles Cunningham, Wright. The role of solicitors are also very confusing:
Tim Ackrel
l ï¬ Acts as seller company [FSL Properties Empress Mill Ltd] solicitors in the sale agreement : Tim Ackrel, Empirical Property Group Ltd
l ï¬ Tim is sole director of a company called DS7. DS7 is the company that lends money to ALD to purchase FSL properties. ALD has charged its asset to DS7.
l ï¬ Tim is also the legal head of ALD (so ALD has charged its assets to a staff?)
l Tim acts both for the landlord (FSL Properties Empress Mill or ALD Orchid Point), and the management company (ALD Ltd) He uses the landlord’s name to demand money from unit buyers but he totally ignored the responsibility of the management company to pay the ground rent and service charges per the management contract. He is using his legal expertise against the unwary overseas buyers?
The solicitors letters were sent at the same time regardless of when individual buyers purchased the units but the purchase time may vary many months. If they had sent the first letter on first due date in late 2014 or early 2015, other potential buyers might know and not buy. In short, this may be a well structured sales scheme. Other development projects by ALD sold by Hong Kong Homes are Summerberry Residences, Olicana and Alexander House. The last two are not yet completed. Summerberry buyers also received solicitors letters. No work appeared done for the last year on the outstanding work at the Mill (staircase, penthouses), and yet they are selling a site opposite calledThe Mill B via a sales agent called MIG, a Malaysian group. Edwen Yew is also Malaysian.
user9103452
Liverpoolabsolute living developments malaysia, DS7 Limited
#10Consumer Comment
Wed, June 17, 2015
Developers Link To Failed Firm
A company behind a controversial bid to turn a derelict government building in Runcorn into flats has distanced itself from another firm that went bust under a cloud of anger from investors and the Advertising Standards Agency in 2013.
Absolute Living Developments (ALD) has applied to convert East Lane House next to Runcorn Shopping Centre into 448 studio and single-bedroom flats.
On Friday, it confirmed to the Weekly News that it had taken over some part-completed developments from Fresh Start Living (FSL), which went into liquidation in 2013.
The company’s statement came after the Weekly News found loan documents lodged with Government business website Companies House relating to third party lender DS7 Ltd.
The forms showed that DS7 had loaned cash to ALD for the East Lane House project, with the terms of the contract granting DS7 Ltd power to appoint one of its officers as a receiver in the event that ALD goes into receivership.
The contract also gives DS7 Ltd the power to ‘take possession’ of the flats in the case of ALD’s demise.
Another form lists the recipient on a forwarding address for DS7 Ltd as ‘for the attention of Charles Cunningham’.
The Weekly News asked ALD whether this was linked to former Fresh Start Living director Charles Alexander Clunie Cunningham, who was the subject of a critical article by Daily Mirror investigative report Andrew Penman in September 2013.
Further documents on Companies House showed that a former Fresh Start Living director, Philip Wright, had been a director at ‘Absolute Living Developments (Orchid Point)’ – another company with a loan from DS7 Ltd.
ALD’s spokeswoman said Philip Wright had been on the board of a ‘vehicle’ that owned a FSL development site acquired by ALD.
He was replaced after the acquisition.
She said there was ‘no relation’ between ALD and DS7 Ltd.
Fresh Start Living went into liquidation in 2013.
Andrew Penman, of the Daily Mirror, said the firm had left investors fuming after they alleged they were left out of pocket having pumped thousands of pounds into properties renovated by FSL.
FSL was also investigated by the Advertising Standards Authority (ASA) after a complaint was made over the firm’s claim to have made a £4m profit. The ASA upheld the grievance.
The Business Desk reported in September 2013 that Stockport Council and Greater Manchester Fire And Rescue Service were taking separate actions over safety breaches.
An ALD spokeswoman said: “Absolute Living Developments have acquired a number of developments around the country.
“Some of these were part-completed developments from Fresh Start Living which were acquired when it went into administration, one being Orchid Point whereby Absolute Living Developments acquired the vehicle that owned the site.
“Philip Wright was on the board of the vehicle and was replaced when the acquisition completed – there is no other connection between Absolute Living Developments and Fresh Start Living.
“DS7 Limited is a lender to Absolute Living Developments on certain developments.”
The Weekly News tried to contact DS7 Ltd for comment.
Halton Borough Council’s development control committee is due to hold a ‘special meeting’ tonight to decide whether to allow ALD’s proposed conversion of East Lane House into flats.
The scheme has been blasted as ‘barmy’ by Halton Lea ward’s Cllr Dave Thompson.
ALD insists it will attract young professionals and key workers.
anonymous
Other,Empirical Property Group, Colonnade House Construction Limited, Charlie Cunningham, Andrew Camilleri, Four Daughters Ltd, Emanuel Mond, Absolute Living Developments Ltd
#10Consumer Comment
Mon, August 25, 2014
Colonnade House Construction Limited
The Debt
CIK have been instructed to recover a debt of £122,261 owing from this company for air supply and extraction work carried out on Colonnade House in the Summer of 2012.
Colonnade House was converted into student apartments (PODS) in 2012 and is located at Sunbridge Road, Bradford, BD1 2LQ. It has been rebranded twice since then, first to The Fort and now to Summer Berry Residences,presumably to try and avoid bad financial press.
EPG Group
The property group behind Colonnade House have serious bad debt form. The holding company is Empirical Property Group Limited - EPG (name changed from Fresh Start Holdings (Manchester) Limited in January 2013) which owned the company FSL Properties Colonnade Limited that owned Colonnade House. EPG was incorporated in February 2011.
The Directors of EPG are Charles Cunningham, Philip Wright and Christian Yates with Cunningham owning 10% of the shares and a Alan Pierce 90%.
Alan Pierce and Philip Wright have had previous property companies that have gone into compulsory liquidation, Wrightchoice Developments Limited (Company Number: 03768709) owing £4.2M and Pierce Properties Limited (Company No. 06578485). There is another individual Andrew Camilleri who has been involved but he was made bankrupt in 2011 for £9M and had to resign his directorships.
The group was fronted until recently by Fresh Start Living Limited (FSL) where Cunningham, Wright, Pierce and Camilleri were all Directors. The FSL acronym has been used in numerous company names within the group. Fresh Start Living went into compulsory liquidation in December 2013.
Colonnade House Company Structure
Like other properties purchased by EPG (there have been 15 or so similar to Colonnade House) there is a company that owns the freehold, a company for the contractors and a lettings/management company.
For Colonnade House they were as follows:
FSL Properties Colonnade Limited went into voluntary liquidation in June 2014.
Colonnade House Construction Limited and FSL Management Colonnade Limited are being dissolved by Companies House due to the two companies having never filed accounts. A commentary on Buy to Let Bradford will be made under Christian Yates's bio.
We understand that the main contractors to Colonnade House via Colonnade House Construction Limited, including our client, have not been paid and there is a view that there was no intention of ever paying them.
Colonnade House Value
There are 224 student apartments of which at least 52 have been sold on 125 year leases at an average value of £40,000.
The freehold was sold by FSL Properties Colonnade Limited in November 2012 to a London based property company called Four Daughters Limited for £773,760. It is not known at this stage who has the beneficial interest of the 224 leases but it is presumed that the imputed value of £9M (224 apartments @ £40,000) lies somewhere within the EPG Group, as does the cash from the sale of the freehold.
It should be noted that the net assets of EPG went from £2M in July 2012 to £23M (mostly fixed assets) in July 2013, which may account for the Colonnade House missing assets.
Other Similar Properties
It would appear that a property, Montgomery House of Demesne Road, Whalley Range, South Manchester, M16 8HP, has gone down the same route and one presumes that other properties in the group have had a similar fate.
FSL Properties Montgomery Limited went into compulsory liquidation in January 2014.
FSL Management Montgomery Limited went into compulsory liquidation in January 2013.
Other potential sites are Empress Mill, Greenock, St Thomas, Victoria Halls and Ford Lane.
Relevant Directors
They are Charles Cunningham, Philip Wright, Christian Yates and Paul Statham- Walker. There are approximately ~ 25 companies active in the group, all owned or influenced by EPG.
All these companies give a registered office of 7 Empress Street, Manchester, M16 9EN but this is a post drop. They actually all work from Suite 7C, 7th Floor, Blackfriars House, Parsonage Gardens, Manchester, M3 2JA.
Charles Cunningham (DOB Dec 1978)
Charles is the CEO of EPG and a 10% shareholder. His bio is well documented on the internet.
We are looking to prove in due course that he is a shadow director of the Colonnade group of companies.
Yes, I met him twice whilst we were chasing monies. It was him who offered other properties as equity, at their offices in Swinton at the time. Bxxxxxx was driving a S65 Mercedes, cost new £120K!
Cunningham is or was until recently a Director of ~ 15 companies within the group. Those with a bad debt track record are as follows:
I am aware of the appalling behaviour and financial mess caused by EPG and those connected to it. We are all one of a number of people who are suffering losses at the hands of this company. We have severed all connections with them other than unfortunately having an outstanding loan to them, which we made before we realised how dreadful their financial situation was. It remains to be seen how big our losses will become .I am afraid all I can do is look on helplessly from outside. I do hope that you manage to get recovery of what is due to you and your client.
Cunningham's current group defence is that EPG has a claim against lawyers on the Trafford Press property of between £5M and £250M. No evidence can be found for the validity of this claim and one would suggest that it is just a flanker to buy time.
Christian Yates
Christian is the only non-executive Director of EPG and has an impeccable bio and it is thus confusing as to why he should have blotted his CV with the EPG crowd.
shorecap.gg/media-centre/shore-capital-appoints-senior-adviser
jonathanfry.co.uk/our-people/
We are unsure of his role within the EPG group but he does have a financial interest noted on the website of Buy to let Bradford LLP, where Paul Statham-Walker is the Director, with a postcode that matches the 7 Empress Street address, as follows:
Buy To Let Bradford is an exclusive Investment Agent acting on behalf of Cherif Investment Properties Limited and Lord Beaverbrook. The Development, The Fort (see top of page under The Debt paragraph), stands as a monolithic landmark overlooking the City of Bradford, offering great student accommodation PODS in a strong location. Student investment from £39,950....
Now Christian Yates is a Director of Cherif Investment Properties Limited. We are currently investigating whether this company has a financial interest in the apartments at Colonnade House or indeed in any of the other properties owned by EPG.
Paul Statham-Walker (DOB April 1980)
Paul is a Director of 8 companies within the EPG group. Evidence would suggest he is made a Director when the company is deemed worthless and being let go. His role within EPG would appear to be that of a sales person, having served previously as a Corporal in the Army.
He goes by the name Paul Statham-Walker, Paul Statham and Paul Walker. His most recent Directorship is at Urban Blox where he calls himself Paul Walker and has changed his DOB to July 1980, presumably to hide his past Directorships as Paul Statham-Walker.
On the Urban Blox website he calls himself Paul Statham.
urbanblox.co.uk/contact/
His relevant companies with a bad debt footprint are as follows:
Philip/Phillip Wright (DOB June 1958)
Philip is a Director of EPG and of another ~ 25 companies within the EPG group. His bio is well documented on the internet. His relevant companies with a bad debt footprint are as follows:
SA Investor
South Africa,Other,
Bradford Colonnnade Investment
#10Consumer Comment
Wed, December 11, 2013
I am resident in South Africa and have purchased a number of investment properties in the UK over the past 4 years. All have been handled professionally and legitimately by the sellers until I purchased a unit at the Colonnade in Bradford through Freshstart Living.
I bought the property for cash in August 2012. Completion took place on 3 September and I entered into a Guaranteed rental agreement with Freshstart Living. Although FSL took 4 months to begin paying I did receive rent for 7 months totalling 2053.31 pounds. However in May 2013 payment stopped. There was no communication from FSL and all attempts from my side including telephone calls and emails went unanswered. Through internet searches I established that the Bradford Council had moved all the tenants out and condemned the building for not adhering to fire codes.
In July 2013 I travelled to Bradford to establish if I could salvage something from my investment. There was a small contingent of contractors on site and they allowed me access to my unit which was on one of 2 floors wehich were apparently being made ready for occupation. The rest of the building looked uninhabitable.
I travelled to FSL offices in Salford Manchester. The door was locked and it as well as the telephone went unanswered. However I did manage to gain access when an employee left the building allowing me to get in. I was not allowed past the vacant reception area. All doors were locked, but I was assisted in getting telephonic communication to Mr Phil Wright. He gave me his personal email address and promised to reply to any email query I had.
He advised that Colonnade would be ready for the September student intake and that rents would again be paid. Mr Wright replied to 2 emails of mine, but for the past month , emails, telephone calls and all attempts to contact him and Charlie Cunningham have been fruitless. Neither have I received any rent. I now own a property that I can't rent out privately because the rest of the building is in a state of disrepair.
b jolly
barnsley,Other,
Freshstart Living Collapses Into Liquidation
#10Consumer Comment
Wed, December 11, 2013
A Manchester property firm has been ordered into liquidation after a lengthy battle with investors.
S Collins
Other,Everyone loses out with this lot
#10Consumer Comment
Mon, November 18, 2013
DEVELOPER FreshStart Living has broken planning and fire safety rules at a residential scheme in Stockport, as problems mount across the group.
Stockport Council issued a planning contravention notice last month over breaches at Mac Court in St Thomas's Place while Greater Manchester Fire and Rescue Service has separately issued an enforcement notice over fire safety issues.
The latest action comes as the company faces a winding-up petition over a scheme in Nottingham and has five county court judgements outstanding worth a total of £31,400. Its Trafford Press development is now in administration and several subsidiaries have been wound up this year following legal action.
In an interview with TheBusinessDesk.com, FreshStart's chief executive Charlie Cunningham said the root cause of the group's problems stemmed from issues with the Trafford Press development in Manchester, and claimed a law firm had made mistakes with contracts that led to sales falling through. This caused funding problems and drained cash from the parent company, Empirical Property Group, said Mr Cunningham.
Administrators at accountancy firm Leonard Curtis have now been appointed to the subsidiary that owns the Trafford Press, FSL Properties Trafford Press, and FreshStart is suing its former lawyers.
Mr Cunningham, who would not name either the firm he has instructed or the firm he is pursuing, said he hoped to win the case and restart the scheme with the proceeds. He also expects creditors to be repaid at Trafford Press and at other schemes.
Trafford Press is one of several FreshStart schemes where investors have been trying to get their money back. Elsewhere tenants have complained of unfinished buildings and non-existent maintenance. In Stockport around 20 residents at Mac Court, a converted mill, complain it was never properly finished. They say windows leak, communal areas are not completed, the lift shaft is boarded up and there is a vermin infestation.
They compiled a dossier with a list of 35 faults and problems which prompted the intervention by the authorities. The residents are now seeking to form their own management company to replace a FreshStart subsidiary and are questioning how the building was signed off by the local council.
One of the residents, former FreshStart employee Lauren Dean, said: "All we want is some communication from them to advise us what's happening. There is a smell of sewage because there are drainage issues, they've known for a year, but don't do anything. They don't reply to emails, there's no maintenance, no update, nothing. All we want is to be able to live in peace in a building that's finished, that's not leaking and where the fire alarms work."
FreshStart launched a number of schemes across the country several years ago, marketing them cheaply to buy-to-let investors and promising good returns. Many were advertised as "student pods" - a student room for under £30,000 with guaranteed rental income for several years.
The action in Stockport follows a case in Manchester where people who had bought FreshStart student rooms at Montgomery House in Whalley Range took charge of the building's management and sued a FreshStart vehicle over unpaid rent. Elsewhere disgruntled investors have taken legal action against the company over the failure to return deposits at schemes where work did not start, or was never completed. In at least one case deposits were taken for a property FreshStart did not own.
The business was set up in 2009 by Salford-based Andrew Camilleri who was declared bankrupt in 2011 over property loans totalling £9m, including interest. FreshStart is owned by Empirical Property whose majority shareholder is Alan Pierce, one of Mr Camilleri's relatives. Mr Cunningham holds 10% of the shares. He has a background as a City broker and was drafted in last year to prepare FreshStart for a stock market flotation. He is an Empirical director along with construction chief Phillip Wright, and Christian Yates who works as an adviser at City investment firm Shore Capital.
Referring to the problems at Mac Court, Mr Cunningham said: "It is finished apart from two basement conversions. The space next door is being developed but we haven't be able to embark on any new developments because we haven't had the funding to do so.
"We've had a serious blow with Trafford Press. We're cash restrained and we've cut costs. We're operating with a smaller staff and trying to make sure everyone's looked after.
"The group has been putting cash into Trafford Press, over £1m without any return. That has affected other companies within the group and we will be seeking arrangements with creditors to protect those companies. An offer will be made and any offer will be the full sum. We're not looking for any creditors to get a reduced sum."
He added: "We've sold over 1,000 units in the last couple of years. Yes, there are people complaining and bits haven't been done properly, but 98% of people are happy with their investment and have done well out of it. Anyone who bought a unit will be getting a decent return and will make money if they sell."
The problems associated with some of FreshStart's schemes are listed below.
Trafford Press
Trafford Press was a high profile FreshStart scheme which involved converting
A FreshStart vehicle, Trafford Press Construction, is now in liquidation after a successful winding-up petition by the Wetherby-based insulation firm Encon. Investors who paid deposits but have not seen their flats materialise are now understood to be preparing legal action against the company.
Mr Cunningham said he expects all creditors to be repaid in full, either from the proceeds of FreshStart's legal action against its lawyer, or if the administrators find a buyer for the building. But a lender called SKPB Services holds a charge against the site and as a result will be paid first.
He said: "If the administrator decides to sell what's left and raises enough money to pay back creditors, everyone will get paid out of that. What we're working towards is getting a settlement to take the company out of administration and pay people, and continue the build."
Empress Mill
It was expected to be complete by this year but the conversion is unfinished and the new block was not built. However, some of the flats are occupied. One investor won a £5,000 county court judgement against the firm in the summer over a deposit that was not returned.
Victoria House Halls, Nottingham
FreshStart announced it had bought a 30,000 sq ft office building in central
Pods were sold to investors who placed deposits of around £2,000 on each room, but FreshStart did not own the building and had no planning consent. Capital Shopping Centres, now called Intu Properties, confirmed it exchanged on the sale subject to planning consent earlier this year. Plans were submitted in April, but later withdrawn. Last month FreshStart's chief executive Charlie Cunningham told TheBusinessDesk, "It's taken much longer than we hoped it would but there's no question of the scheme not going ahead".
But investors are trying to get their money back. One, London-based Roger Walters has issued a winding-up petition against FreshStart over a £20,000 deposit. Chinese investor Rosa Wong has been to FreshStart's Salford office several times to recover £15,000. On one occasion she went with a Chinese estate agent who was owed £4,000 in commission for marketing FreshStart properties overseas. He recovered the debt but Ms Wong was told the scheme was still going ahead. In search of help she went to Salford City Council, the police, Trading Standards and The Property Ombudsman and felt she was "kicked around like a ball". She has now issued civil proceedings.
She said: "I planned to invest in the real estate market in the UK, but after the issue with FSL and the experience of complaining to different official departments I changed my mind and put most of my money in the States. Many real estate agencies in my city never trusted British companies again because they lost money and didn't get commission from doing business with FSL. They have turned to the property markets in other countries, just as I did."
Last week Mr Cunningham admitted it had been a "difficult" scheme because of the building's layout. He said the planning application had been withdrawn because it required amendments, "but we're doing our best to get it through".
Montgomery House, Manchester
Last year FreshStart sold the freehold to Stratford-upon-Avon-based property group Marden Ltd for £930,000 and its management company was wound up following a separate action by investors.
TheBusinessDesk understands another case is being prepared against FreshStart by investors whose student pods were turned into communal kitchens in order for the block to comply with Manchester City Council's HMO (House in Multiple Occupation) rules. One investor lost three apartments in this way, for which she paid a total of £72,000. Mr Cunningham would not comment on this situation due to the pending legal action.
On the matter of guaranteed rents Mr Cunningham said there had been "delays", but he didn't think, "many people were behind on rental guarantee payments".
Colonnade House, Bradford
This FreshStart student scheme at Provident Financial's former headquarters in
West Yorkshire Fire Service issued a prohibition notice saying the fire escapes and alarms were inadequate. The notice has since been lifted.
FreshStart acquired the nine-storey 1960s building in 2011 and was converting it into 200 student rooms. At the time of the inspection only the top three floors had been completed and were occupied by up to 70 students who were forced to move out. In the summer Bradford University and the students' union warned students not to take rooms at the building for the 2013-14 academic year, but retracted a statement after protests from FreshStart.
Last week Mr Cunningham said the scheme was "practically complete". Earlier this month the Paisley Daily Express reported that a FreshStart student scheme in the Scottish town had been shut down for breaching fire regulations and building laws. In an echo of Colonnade House, fire safety officials evicted tenants following an inspection and only the second of five floors had been completed.
Bispham House, Liverpool
FreshStart has now sold its freehold interest and investors have ousted the FreshStart management company, opting for one of their choice in the same way as investors at Montgomery House in Manchester. A source told TheBusinessDesk: "Landlords have paid more to bring it up to standard and they have not received rents. FreshStart always said it would be completed and it never was."