LPA Receivership Appointment – Derelict Spa Hotel
The Property: La Spa, Cirencester
Acting on behalf of : Major high street bank
The Brief
The property comprised a former luxury Spa hotel and restaurant located in Cirencester. Having been vacated some 6 months prior the LPA Receivers faced an number of challenges
The challenges
• The abandoned property had been subject to theft and vandalism and was a local eye-sore
• Stone roofs and walls, fireplaces, and fixtures and fittings had been removed
• The main building which was locally listed was not wind or watertight
• Squatters were on site
• The buildings were being used for illegal purposes
• The property presented significant health and safety risks to anyone entering the site
• No trading records for the operation were available
• No insurance in place
Having been made aware of the above and wishing to minimise risk the bank wanted a sale at the earliest opportunity.
The Solution / Actions taken
The Receiver’s immediate priority was to secure the property and take steps to minimise any further damage by
1) Securing the site with fencing and arranging site security with dog patrols
2) Arranging insurance cover for the property together with public liability
3) Fixing a heavy tarpaulin over the entire roof to stop further water damage, fixing doors, windows etc
Having secured and stabilised the site, the next step was to establish the best route to market that would secure the greatest return
• Discussions with the local planners identified alternative uses the buildings could be put to, residential or healthcare
• A firm of national agents were chosen to market the site who undertook an extensive and targeted marketing campaign, generating interest from national, regional and local developers
The Outcome
Strong interest merited best and final offers being sought from all interested parties which secured an eventual sale price in excess of £3m. At this level, the client recovered the majority of its debt.
Alternative Use – Conversion to a retirement village, nursing & care home
The site was developed by Aura Care Living and renamed as Stratton Court Retirement village . The home comprises 61 en-suit bedrooms, together with a number of assisted living apartments. This is a good example of the re-purposing of a leisure building and grounds to a healthcare use.
Back to Property Debt Advisory (LPA / Fixed Charge Receiverships)
Lead Director: Chris Price MRICS NARA
Chris is an RICS Registered Property Valuer & LPA
Receiver, with 30 years experience in the corporate
recovery / asset debt recovery sector