FreshStart Living subsidiary facing winding up petition
A WINDING up petition has been filed against a subsidiary of the Salford property developer FreshStart Living.
The case against FSL Properties Montgomery will be heard in Manchester on Monday.The business was set up in 2011 to buy Montgomery House, a former YMCA building in Whalley Range, south Manchester, which FreshStart turned into student flats and sold on to individual investors.
Last year FSL Properties Montgomery sold the freehold to Stratford-upon-Avon-based property group Marden Ltd for 930,000.
But a petition is being brought against the company by Dr Ahmed Al-Sened of Wilmslow, who is being represented by Manchester law firm EOS.
FreshStart claims Dr Ahmed Al-Sened is not a creditor and it plans to defend the action when it is heard in court.
In January the building's management company, FSL Management Montgomery, was wound up following action by investors who bought flats in the block but said tenants' rent was not being passed on to them.
Accountancy firm RSM Tenon has been appointed liquidator by the Official Receiver and claims 140,000 has not been paid. Management of the building was handed over to Hertfordshire-based Residential Management Group before Christmas.
Meanwhile, it has emerged that a FreshStart student scheme in Bradford was shut down in November for breaching fire regulations.
Following an inspection of Provident Financial's former headquarters, Colonnade House in Sunbridge Road, West Yorkshire Fire Service issued a prohibition notice. The fire service said there were inadequate means of escape and inadequate means for giving warning.
FreshStart acquired the nine-storey 1960s building in 2011 and was converting it into 200 student rooms. At the time of the inspection only the top three floors had been completed and were occupied by up to 70 students who were forced to move out.
FreshStart said a re-inspection had taken place in the past two weeks and it should be signed off soon. A register on the Chief Fire Officers Association website shows the notice is still in force.