Kingston Smith & Partners investigates failed student accommodation investment scheme
Brian Baker, partner at Kingston Smith & Partners, was appointed liquidator of Franklin International Ltd, a company incorporated in Gibraltar on 12 June 2019. Kingston Smith & Partners was appointed at the request of several individual investors who have seen their investment in the growing student accommodation market collapse without warning.
Brian Baker commented: “On early inspection, it appears 140 flats in Bolton were sold off-plan to investors with the incentive of high rental yields and a profitable return. Deposits totalling over £3 million have been taken along with bank finance of £5 million, although the accommodation remains unfinished. At this stage, we are trying to establish the flow of money and find out why this project has failed. We shall be interviewing the director and key protagonists shortly and hope they will be able to shed light on what has happened.”
The property is currently in the hands of receivers, appointed on behalf of the lenders, who are considering their options.