Penningtons Manches’ group action team, led by partner David Niven and senior associate David O’Brien, are investigating further claims in relation to ‘buyer funded’ developments across the UK which have been targeting Asian investors.
In a market where scams are aplenty, Penningtons Manches’ group action lawyers have recovered over £4 million in the last six months alone on behalf of Asian investors in failed, off-plan UK property developments in Manchester, Bradford, Liverpool, Leicester and London.
In most cases, the developments are marketed to be built by property developers using the upfront deposits of multiple small investors for funding – which can often be up to 80% of the value of the unit - and usually promise high rates of return upon completion. Losses occur when the developer becomes insolvent, having spent or in some cases misappropriated the deposits.
The latest scheme being investigated by Penningtons Manches involves losses by Hong Kong and other Asian investors in the development known as ‘Baltic House’ in Liverpool.
David Niven comments: “The failure of these off plan developments is becoming more and more common and is causing huge numbers of small, private investors to lose their savings. We are assisting many investors to recover their losses, particularly from liable parties other than the developers themselves, who are usually insolvent and not worth pursuing. We invite others who have suffered losses to get in touch and join the group actions that we are leading.”