Investors in a failed Liverpool property development spoke of their financial nightmares after putting money into the project before anything was built.
Buyers at The Rise on Low Hill used their savings to pay for the ‘off-plan’ investment as nothing had been built to secure a mortgage against. They were told that at the site’s completion there would be 400 brand new apartments close to the city centre.
More than 100 people subsequently made an off-plan investment in the development. They were told by the developer that they could expect “an assured 8% annual return on their money”.
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However, the firm behind the development, Hill Top Rise Ltd, fell into administration in 2020. The company is linked to Primesite Developments which went into compulsory liquidation in 2019.
An administrators' report revealed that as well as the impact of the pandemic, one of the main reasons for its collapse was "contractual issues" - involving "losses on a number of contracts". The biggest of those, the report said, was seven-storey The Rise.
