A notorious city centre development site is being put up for sale at an online auction.
With starting bids invited at over £5m, it is set to fetch one of the highest ever prices in an online sale.
The price at the fall of the electronic gavel is likely to be considerably higher than £5m. Bidders must pre-register their interest and lodge a deposit of £500,000, and if they are successful, be able to access the full asking price within two days.
Countrywide brand Lambert Smith Hampton is handling the sale of the two-acre site at Dantzic Street in Manchester city centre.
It has lain empty and boarded up despite having been given planning permission in 2013 for two apartment blocks, with a total of 344 flats, a mix of commercial accommodation and 274 car parking spaces.
Overseas investors had piled into the £30m Angelgate scheme, purchasing apartments off-plan and paying up to £350,000.
Investors claimed that after paying deposits of around 80%, they were asked to part with more money to see the development finished.
According to the Manchester Evening News, 73 buyers reported the matter to Action Fraud, with the case passed on first to Greater Manchester Police and then to Titan, the North West Regional Organised Crime Unit.
Last October, it reported that 33 Hong Kong buyers put the organisation behind the development, Pinnacle Angelgate, into administration.
Joint administrator Duncan Smith of Moore Daniels said yesterday: “The Angelgate site has historically attracted a lot of investor and purchaser interest from around the world.
“Hence we have harnessed technology to offer the site for sale by way of an online auction – conducted over the internet, to ensure it is given maximum exposure globally.
“An online auction also has the benefits of being the most transparent and efficient sales process available on the market. All prospective purchasers have access to the same information.
“There’s no ‘smoke-filled room’ chatter or pre-sale politicking that such sales typically attract. And, any risk of post-sale price-chipping is substantially reduced.”
It is thought likely that future developers may review the previous application and enhance the planning permission with a higher density development.
Oliver Childs, head of auctions at Lambert Smith Hampton, said: “This site has already received significant media attention.
“The online auction platform will allow us to extend the reach of our marketing into the global investor and development market, providing our client with all the benefits of a traditional ballroom auction, but with the advantage of an enhanced marketing period and an effortless way to bid online for both the domestic and international investor to ensure the highest price is paid in open competition.”
Interested parties will be required to pre-register to bid, by providing the auctioneers with a holding deposit of £500,000, together with proof of identity, address and source of funds to comply with UK anti-money laundering regulations.
The successful purchaser will be required to pay the balance of the 10% deposit based on the purchasing price within two business days of the auction closing.
Similarly any unsuccessful bidders will have their deposits refunded in full. Completion will take place 20 business days after the auction closes.
Bidding is to open on April 23 at 9am and close at 2pm on April 26.
Registration for bidding closes at 5.30pm on April 24.
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