An oversupply of student accommodation in Newcastle prompted a forced administration of the businesses behind the Newcastle Glassworks building, administrators say.
Newcastle Glassworks Limited, Newcastle Glassworks Management Limited and Bricks K5 Capital Ltd - all part of the wider Hong Kong-based Bricks Capital group - went into administration at the end of July having not made capital repayments on £11.6m of debt since 2016, and no interest repayments since 2018.
The property - which was only completed in 2016 using an innovative pre-fabricated container method - was sold in a pre-pack deal to the Chinese lender CIMC, which owns the company that provided the containers. It followed months of failed negotiations in which Bricks had tried to refinance its debt.
