A derelict Plymouth city centre office block where a dead body was discovered is now being marketed as a “development opportunity” after the company which owned it went out of business.
Property consultants at Bruton Knowles are advertising the huge Mayflower House block in Armada Way, where the current dilapidated building is earmarked for demolition. It has been used by rough sleepers with police finding evidence of drug use and even a dead man inside.
Now Bruton Knowles is marketing the plot, on the intersection of Mayflower Street and Armada Way, as a “mixed use development opportunity” on behalf of fixed charge receivers.
In 2016, Mayflower House was given planning permission to be demolished and replaced with an 18-storey tower containing 490 student flats above shops and offices.
An attempt was made three years later to amend this to 332 student bedrooms, 2,381sq m of offices and a 120-bed hotel, but no full application was ever submitted.
A Bruton Knowles brochure said: “The proposed development will comprise of a purpose built student scheme, providing in total 490 bedrooms, arranged as 52 clusters and 78 studios.
“The scheme will also comprise communal facilities being: reception, laundry room, staff room and external bike store and paved areas. The property currently comprises an existing office and retail building, demolition works HAVE commenced.”
Demolition work began in 2019 but was then halted and has not restarted during the coronavirus pandemic. Experts from London-based Hill Demolition had moved on to the site, covered the building in scaffolding and plastic sheeting and placed fencing around it, and was awaiting further instructions when the pandemic struck.
It had been planned to crane a lifting machine onto the roof of the five-storey pile and start ripping the top floor apart, continuing down until it hit the ground. The whole project was estimated to take about 12 weeks to complete.
In February 2020 police were called to the building and found a dead 42-year-old man inside. On another occasion officers found discarded hypodermic needles, glass bottles and small metal trays, used to mix heroin for injecting. The building was made more secure following these events.
London-based property developer L&UK Property has been advertising the revised student flats and hotel idea on its website, saying it was due to be “completed on time for the 2023 student intake”.
Business Live attempted to contact the firm without success and now it emerges a company called Mayflower House Developments Ltd, whose two directors are also on the board of L&UK Property and shares the same address, went into voluntary liquidation in January 2021.
Corporate recovery specialist Begbies Traynor was appointed liquidator, but the 0.133-hectare (0.328-acre) plot is being marketed on behalf of fixed charge receivers, because it was subject to a loan.
This fixed charge was for £2,688,159, and provided to Mayflower House Developments Ltd by London-based property unit trust company White Hall Lending Ltd, secured on the leasehold land and buildings at 178 Armada Way, including Mayflower House.
Documents submitted to Companies House say the property has a book value of £3.5million but is only likely to realise £1million, meaning White Hall Lending is owed £1,688,159.
The price of the property has not been disclosed but is available to anyone who approaches the seller.
The receivers are Edward Avery Gee and Daniel Richardson of Manchester-based business recovery specialists GC&Co.
Bruton Knowles said the property is subject to a lease agreement granted for a term of 125 years from September 2013. The current rent is £39,032 plus VAT per annum.
The Plymouth and South West Devon Local Plan identified the property as just outside an area described as “primary shopping area and centre boundary” and planning policy states: "Land at Mayflower Street East is allocated for an office-led mixed-use development, with active ground floor uses (retail/food and drink) and student accommodation as enabling development.”
