The long-delayed Shankly Hotel Preston has been sold in a nominal £1million deal.
The hotel, which is due to be developed in the former Post Office building by the Flag Market, had been due to open in 2019 with 65-rooms, a bar, restaurant and wedding and events suite. However, it was hit by repeated delays until work ground to a halt when the Covid-19 pandemic hit.
From there, the company behind the development – Signature Living – entered bankruptcy and is also facing an investigation by the Serious Fraud Office. In 2022, Manchester-based administrators Knoll were appointed to salvage a future for the development and a return for those owed millions of pounds by the failed venture.
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Now, the largest of those lenders has bought the hotel in a £1m deal which will see no cash change hands but instead have that amount removed from the money it has already loaned – which includes £12m lent to Signature Living to finance the works and a further £1.2m throughout the administration process.
The deal was agreed following consultation with, and with the recommendation of, commercial property experts CBRE. As a result, the leasehold for the hotel is now owned by the Gloucester-based developer, which is ultimately owned by investment group Blackfinch, and the deal means it is likely progress can finally be made with works to finish and open the luxury hotel.
However, administrators note there are no further returns likely to be paid, meaning Lyell will not get the rest of the money it lent and contractor SW Construction (No.2) will not get a return on the £4m it was owed. That company is now also going through a liquidation process.
The former Post Office building, which is grade-II listed, was sold to Lawrence Kenwright’s Signature Living group in 2016 by Preston City Council.
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