Newcastle’s Quayside West development plot sold by administrators
A plot of land in Newcastle which was once the potential home of a £250m development has been offloaded by administrators.
Developer Newby initially unveiled its plans in 2018 for the Quayside West development, which would have seen the creation of 1,100 homes, as well as retail, leisure, and business space. A 135-bedroom hotel was also planned.
Despite the proposals receiving planning approval in 2020, Newby is understood to have pulled out of the project two years ago. Then on 10 July 2023, Quayside West Ltd – the company set up to lead the development – was placed into administration.
Administrators from FRP Advisory have now accepted a bid for the land worth £7m, and hope to complete the sale as soon as this month.
FRP Advisory said that a multitude of reasons led to the development company’s collapse, starting with its failure to secure funding from the Government. The group had been looking to secure grant funding to begin redeveloping the site, which was needed due to high infrastructure and clearance costs.
The firm’s creditors then confirmed they would be unable to provide further funding until it found a new strategy. Then a winding-up petition – supported by two secured creditors – was received with a hearing date of July 2023.
FRP Advisory was then appointed as administrators by one of the group’s secured creditors, after they had been contacted by Quayside West for informal advice.
Documents show that Quayside West collapsed owing its company creditors almost £14.7m, with unsecured creditors claiming around £4m. However, FRP Advisory said that it is unlikely those debts will be repaid.
Four secured creditors, who either helped fund the purchase of the site or its development, are believed to be owed a total of over £10m. FRP Advisory said that the debts to two of these creditors will likely be “substantially repaid” using funds from the sale of the site, however a lack of funds means the remaining two will miss out.