7-8 July, 2021 7/7/2021 12:00:00 AM 7/8/2021 12:00:00 AM Europe/London

ULF

The leading industry news resource; industry awards and international b2b conference and exhibitions for the sector Tobacco Dock, Tobacco Quay, Wapping Lane, London, E1W 2SF International Hospitality Media info@internationalhospitality.media
Tobacco Dock, Tobacco Quay, Wapping Lane, London, E1W 2SF Tobacco Dock, London

Luton PBSA schemes go in to administration

George Sell Uploaded 02 February 2021: UK: Companies that own two PBSA schemes which were formerly valued at £35 million have been placed in to administration.

Administrators from David Rubin & Partners have been appointed to London Luton New Street Student Accommodation Ltd and London Luton Chapel Street Student Accommodation Ltd. Both companies are controlled by Steve Worboys and Jerald Solis, founders of residential investor and developer Opto Living.

The two schemes total more than 600 rooms, and according to a report in Bisnow they are the first significant schemes to go into administration or receivership since the beginning of the pandemic.

The two schemes, Opto Village and Chapel Street, were completed in 2017 and 2016 respectively. The local council had received complaints that the schemes had been used as hotels as well as student accommodation, a use outside of the planning consent granted to them, local news outlet Luton Today reported.

Opto applied in July for a retrospective planning consent for use of the schemes as hotels and student accommodation, but it subsequently amended this application, seeking consent instead for permission to mix coliving and student use. Permission for this was granted in October.

The company has also developed PBSA schemes in Cardiff and Newcastle as well as BTR and hotel schemes in Luton.

During the pandemic PBSA operators have had to return rent to students who could not take up their places in the 2020 and 2021 academic years.

This hasn't stopped institutions such as Barings and Ascott Residence Trust making their first moves in to the sector in recent weeks.

View all Articles

"ULF is a long needed innovative approach. The blend of content demonstrates that hospitality provides the increasingly crucial thread through so many real estate classes and not only refers to traditional hotels and serviced apartments but has already permeated the residential markets in their increasingly varied formats. Now these services are expanding into the residential innovative care and office markets in the UK and overseas. We are witnessing the market converging at pace as investors seek optimum yield across a variety of urban asset classes. These are exciting and pioneering times and I look forward to expanding my horizons at this unique event"

Laurence Geller CBE, CEO Geller Capital Partners

Subscribe and keep up-to-date