A company that once claimed to be the largest build-to-rent developer in the UK has entered a legal dispute with a major investment fund.
Edmond de Rothschild REIM has issued a legal warning against the High Street Group, alleging that the developer circulated false claims to loan note investors and acted with “malicious falsehood”.
In a letter to chairman Gary Forrest, seen by EG, EDR lawyers claim HSG falsely told loan note investors that it has an investment at Birmingham’s Kent Street Baths scheme, which would remain in the project until completion.
“You have sought to blame our clients for your unwillingness and/or inability to repay your investors,” it says. HSG hit back at these claims. Forrest told EG it has £10m in payments and commercial space, including a large amount of equity which would be used to pay loan note investors.
The row has erupted as HSG small investors demand answers from HSG following the lockdown of the £100m loan note and subsequent deals passing HSG assets to new brand Hadrian Real Estate. Last week, Forrest told investors HSG had missed out on a 2,000-home deal that would generate £175m for the company because “adverse social media” prompted a major fund to abandon plans, with two other investors later walking away. With uncertainty over funding and debate over ownership, investors are still trying to understand how their money will ever be returned.
Elsewhere in BTR, this week EG spoke to BMO REP’s Guy Glover and Peter Lowe about the Canadian asset manager’s £750m residential investment plans. In the same week that the government confirmed controversial tax hikes to back social care reform, the pair explain BMO’s dual strategy offering its own solution, with the Responsible Housing REIT and the UK Housing Fund. Lowe says: “If public capital is not willing or able to enter the space to create new homes, then private capital could definitely be welcomed.”
Another (perhaps unexpected) listed company making waves in resi is shopping centre owner Capital & Regional. On the same day that C&R revealed the value of its portfolio had halved, it also announced a new partnership with Far East Consortium to supercharge its resi strategy. The pair will spend the next 18 months working to identify residential opportunities across the portfolio of seven shopping centres, with two schemes already in the works.
Deborah Freeman-Watt, head of urban opportunities at Landsec, writes about how repurposing assets with a blend of living, shopping, working and play can create sustainable neighbourhoods. Landsec has identified more than 50 acres of land to deliver such opportunities. Freeman-Watts adds: “But there are even more to come – opportunities for us to leverage our expertise to transform and reinvigorate urban neighbourhoods across the UK, building successful places that are both shaped by and champion local identity.
View the magazine, download the app and read on for more of the week’s headlines:
Montreaux wins consent for Cricklewood B&Q regen
Westminster votes against Berkeley’s Paddington Green Police Station scheme
Merton and Clarion agree deal to tackle viability at 2,550-home estate regen
Greenwich council selects resi developer for Woolwich Leisure Centre scheme
U+I gets green light for £770m Greenwich scheme
Peabody inks first environmental-linked loan
PGIM Real Estate closes $1.1bn European value-add fund
Nearly 11,500 homes flipped to holiday lets as staycations soar
Watkin Jones sells first co-living scheme as pipeline grows
Leeds jv secures £55m dev loan
Gunnersbury Park PD resi gets £55m boost
Pocket pockets £23m in funding first
Vistry returns to pre-pandemic form as profit beats expectations
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