Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
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!
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