Latimer, the development arm of Clarion Housing Association, has taken over a stalled project at Salford Quays after Fortis defaulted on a loan provided by Latimer.
Fortis UK Holdings and Fortis Developments have entered liquidation, leading to unfinished projects and a complex web of intercompany debt. Liquidator Begbies Traynor’s statement of affairs indicates that Fortis UK Holdings owes Latimer £6.3 million.
Latimer secured the loan with charges over certain Fortis group entities and assets. Among these is a site intended to be part of Fortis Group’s 900-home residential cluster at Salford Quays. Due to the liquidation of Fortis UK Holdings and its guarantor, Fortis Developments, Latimer now controls the site earmarked for 158 apartments as a fixed charge holder.
Documents filed with Companies House suggest this situation may complicate efforts to sell the site and recover funds for creditors of Furness Quay Phase 1 Ltd, the special purpose vehicle (SPV) established for its redevelopment. Administrators for the Furness Quay SPV are negotiating with Latimer, which recently completed the 272-apartment Amplify scheme nearby, to determine the next steps.
Fortis UK Holdings has entered liquidation with total debts of £17.2 million, while Fortis Developments owes £19.1 million. According to filings with Companies House, most of these debts are owed to other related companies.
Furthermore, Beaumont Morgan, the construction arm of Fortis Group, went into administration in 2022, owing £12.3 million to creditors. The company was dissolved in April.
