Dylan Harvey Residential placed in administration

Property company Dylan Harvey Residential has gone into administration.

Administrator CLB Coopers said the firm failed as an effect of the property market grinding to a halt.

The company had a stated turnover in excess of £50m and liabilities of around £100m as of April 2009.

Its creditors include 500 private investors who paid between £5,000 and £20,000 each as deposits for residential apartments. Most involve off plan reservations for schemes that didn't progress into actual developments due to developer failures.

In a statement Dylan Harvey Group, the parent company to Dylan Harvey Residential, said: "Lack of funding availability has severely impacted both developers in the construction of existing/planned projects and the purchaser’s ability to secure mortgage funds to complete the sales process at contracted prices agreed at the high point in the property market.

“DHR has not been immune to these factors. Investors have been unable to secure mortgage funds to complete on key schemes over the past twelve months which has had a material adverse impact on DHR’s cash flow. Further a number of DHR’s contractual partners have failed to secure development funding to commence planned developments and have either been forced to postpone developments indefinitely or been placed into liquidation. This has recently resulted in the write off of significant funds paid as deposits by DHR.

Mark Getliffe of administrator CLB Coopers said: “We are working hard to finalise the full financial position and explore all the options in respect of any value which can be recovered for creditors including working with the Dylan Harvey Group in relation to an enhanced position for creditors.

“The business appears to have failed because of the domino effect of the residential property market grinding to a halt. It was also affected by one of its contractual partners, Fresh Developments Ltd going into Liquidation in April this year, owing DHR £1.7m.  In some ways not having to contractually complete on properties valued at the peak of the market and for which mortgages may now no longer be available may have limited the potential losses to the clients.”