A COMPANY has taken over a flats scheme thrown into doubt when a developer went bust, owing millions to overseas investors.

Manchester-based investment firm DS7 has taken on former council office Olicana House, in Chapel Street, Little Germany, where a project to create 138 apartments was left half-finished by the collapse of Absolute Living Developments (ALD).

Hong Kong Police are investigating ALD’s collapse, which left overseas investors millions of pounds out of pocket.

Investors had been buying the flats at Olicana House and elsewhere as buy-to-let investments but staged protests in Hong Kong after the firm went into liquidation.

Now, DS7 has applied for planning permission to create 19 further bedsits within the building, in areas which would otherwise have been reserved for storage.

Documents show DS7 had been a lender to ALD for six projects, including Olicana House and nearby Alexander House, in Bolton Road, where another flats scheme is also unfinished.

DS7 lists itself as the owner of Olicana House in its planning application.

The application says: “The new use, 19 extra apartments, will help to regenerate the area and aid the original goal: to bring back into use the vacant building with a new use that will guarantee its future sustainability.”

DS7 has also applied for retrospective consent for a concrete substation at Olicana House, which, documents show, was built between February and April of this year, when Absolute Living Developments was running the project.

DS7’s director is listed as Charles Alexander Clunie Cunningham in official documents.

Mr Cunningham was also a director of another development firm working in Bradford, Fresh Start Living, which went under in 2013.

Fresh Start Living had been behind the plans to turn former Provident Financial base Colonnade House in Sunbridge Road into flats - a scheme which was later taken over by Absolute Living Developments and is now called Summer Berry Residences.

DS7 did not respond to requests by the Telegraph & Argus for a comment about the application.

Claire Wilde, Bradford Telegraph & Argus