Exclusive | Hong Kong investors pressure UK developer to make good on quarterly ‘guaranteed’ returns pledge
- UK developer misses payments on ‘guaranteed’ returns on student accommodation and leisure projects
Several Hong Kong investors are among an international group of more than 100 seeking redress from a UK property developer they say has fallen behind in quarterly payments on guaranteed returns on property investments.
According to several of the investors, developer and manager A1 Alpha Properties (Leicester) stopped paying them rental returns after mid 2018 on their investments in student quarters and holiday homes in Britain.
They said they were entitled to receive guaranteed and fixed returns of about 10 per cent for 10 years.
A1 Alpha was placed into insolvency in February at the request of investors. According to business advisory firm Quantuma, appointed to handle the insolvency, the case involves 2,160 units and 1,377 investors across 20 projects in the country.
According to seven investors contacted by the Post, the student quarters projects included College Street Village in Leicester and Scholar’s Court in Bradford, while there were also six holiday home projects, including ones at Westbeach in Devon and Green Park in Ilfracombe.
The properties, which cost about £50,000 (HK$510,000) each on average, were marketed by UK-based agency Emerging Property and developed and managed by companies related to A1 Alpha.