Student Pods recent set backs?

by Readers Question

2 months ago

Student Pods recent set backs?

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Student Pods recent set backs?

Does anybody here know anything about Pinnacle’s Canterbury Student Village developed by Manchester-based Pinnacle Alliance during 2013-5?

The development, which consists of 336 student pods, was developed by Pinnacle Alliance off-plan aimed to attract both UK and overseas buyers. The ownership is leasehold.

Completed in 2015, the development has been successfully tenanted until now. Despite the fact that more and more student pods are coming online in Canterbury, the demands for the pods outstrip the supply by far. This renders the Canterbury pods in demand.

As original off-plan buyers, we were offered a 5-year guaranteed rental yield roughly 8% per annum. Until March 2017, this has been honoured without issues.

However, recent setbacks at other Pinnacle developments (e.g. Angelgate) raise concerns about the developer’s integrity. This has been demonstrated by their delay to the original guaranteed payment schedule by Harper Brooks (Camborne) for one month to the existing Pinnacle student pod owners, without consultations and I believe is in breach of the original agreement.

Furthermore, it was known that Canterbury Student Village’s freehold was sold to an offshore company in late 2015. Pinnacle’s original Special Purpose Vehicle (SPV), NWS Development Ltd, was relegated into Head Leasee. The SPV was subsequently dissolved on 14 Feb 2017. Many Pod owners are now at a loss as to what action they can take or who to take their case to – the developer Pinnacle Alliance, or the appointed managers Harper Brooks & Camborne. Confusing everybody even more, is the fact that, when called, Pinnacle Alliance and Harper Brooks & Camborne blame each other for the non-payment of rents, yet both companies have the same people on their Boards of Directors!

Many thanks

Martin

Comments

Kim Carvell

2 months ago

Hi Martin, please feel free to email me. I am an owner , we are In contact with most of the owners of Canterbiry Student Village. We are taking action. Do not sign your new contract with HB. Kim
kkmc1@hotmail.co.uk

Dr Rosalind Beck

2 months ago

This has nothing to do with me, but I am interested in knowing what happens in this case, and others will be too, so if you can keep us informed here, that would be good. I thought some of these deals were 'too good to be true.' I even saw ones which guaranteed 10% for 10 years, I think - possibly on student pods which only cost around £70,000... meaning you'd get it all back theoretically within 10 years. I always wondered also what wasn't being said - for example, how many students would pay £7,000pa and if they paid that gross, what about the deduction of all the costs, so how much would the investor get and so on? It would be helpful if you could give us more information on what is happening with yourselves or even what was promised, as these deals are still constantly being advertised.

Eddy Lau

2 months ago

On 28 Sep 2017, the Companies Court approved an Angelgate buyer's application to put Pinnacle (Angelgate) Limited into administration. This reflects that the past promise issued by Pinnacle (stating that it would build Angelgate) was not trusted by buyers. The lack of confidence on Pinnacle is due to its lack of progress from April to August of 2017, during which it claimed to have engaged a contractor to compile a bid. But 4 months had passed. The bid was not produced. Buyers chased Pinnacle but it remained silent.

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