Sunningdale House Developments entered administration owing creditors more than £46million

mikegarnersunn2 — Sunningdale housing development in St Nicholas at Wade Photo Mike Garner

An administrator’s report shows Sunningdale House Developments went into administration last year owing creditors more than £46 million. A further £182,403 was owed to employees and directors.

There were Sunningdale housing developments across east Kent including Eden Grove in Minster, Heritage Fields and The Stables in St Nicholas-at-Wade and South Cliff Place in Broadstairs.

Concerns were raised when workers downed tools at sites last Summer, leaving developments such as at St Nicholas and Minster unfinished and property owners on other sites still waiting for snagging issues to be fixed.

A meeting was called in August by North Thanet MP Sir Roger Gale for those who had paid for properties to raise issues about unfinished works.

Administration

But just days later it was revealed that seven administration applications had been filed to the High Court against Sunningdale House companies and HF Developments.

Applications for winding up petitions and notice to appoint an administrator were listed as being lodged in July and August.

Six High Court applications for administrative orders were made by West One Loan Limited which had floating charges against the companies in relation to loans.

West One Loan Limited was one of three secured charge holders taking steps to “trigger” the insolvency process.

Administrators CG&Co were appointed in the August. The validity of the appointment was contested by Sunningdale Investments Limited (“SIL”), via their appointed solicitors, who made a court application to challenge it. SIL are largest creditor of Sunningdale House and attempted to raise uncertainty over West One’s security.

In October the court declared the appointment was valid and by consent of all parties, Quantuma Advisory Limited was appointed alongside CG&Co as Joint Administrator.

Sunningdale House operated as a residential developer building bespoke, multi-occupancy schemes, waterfront and family housing developments predominantly in the south-east. It consisted of approximately 40 companies.

It was incorporated on 24 November 2014 and Gary Lever was appointed as a director. Two days later, David Pownceby was appointed as a director.

The model for the group was to purchase property/land for development into residential schemes. The purchases were made using a combination of retained funds, unsecured loans and secured loans from various lenders. Shareholder, Sunningdale Investments Limited (“SIL”), loaned monies to support purchases and developments of multiple schemes.

Sunningdale employed approximately 25 people.

In 2021, SIL introduced consultant Robert Locker to monitor ongoing projects and in September 2021, a settlement agreement between Sunningdale House and SIL was agreed to allow for a repayment of funds owed to SIL to be paid over 25 years.

SIL then became aware Sunningdale House was experiencing financial problems and it notified David Pownceby that it intended to terminate the Settlement Agreement.

In June 2023, Robert Locker was appointed as a director of Sunningdale House and in August David Pownceby resigned and the company filed a Notice of Intention to appoint an administrator. The company was also served notice by West One Loan Limited in respect of outstanding loans.

Winding up petition were made to the High Court for:

Sunningdale House Developments (Bisley) Limited
Sunningdale House (Dover Road Walmer) Limited
Sunningdale House (Heritage Farm Two) Limited
Sunningdale House (Ascot) Limited
Sunningdale House (Ascot Two) Limited
Sunningdale House Developments (Maidstone) Limited
Sunningdale House (Cliffside Drive) Limited
Sunningdale House (Heritage Farm) Limited
Sunningdale House Developments (Ascot Three) Limited
Sunningdale House Developments (Larkey Wood Farm) Limited
Sunningdale House Developments (High Halden) Limited
Sunningdale House Developments (Eastry) Limited
Sunningdale House Developments (Foxwood) Limited
Sunningdale House Developments (Minster) Limited
Sunningdale House Developments (St Nicolas) Limited
Sunningdale House Developments (Tuckingmill) Limited
Sunningdale House Developments (Walmer) Limited
Sunningdale House Developments (Sandgate) Limited

Proceedings for several of the companies were withdrawn while the remaining cases are still active. HMRC is the petitioner.

David Pownceby was formerly a director of Lilybrook Developments which was dissolved in 2013 leaving creditors owed some £17.3million. A year prior to that DRP Real Estates, of which Mr Pownceby was also a director, was wound up with creditors owed £16.6m. These included Thanet council which was owed £5,500.

Mr Pownceby is still listed as director for Development House Ltd which, as of last August, had 216 creditors owed £4.2m at the time of winding up proceedings.

He has active director listings for seven companies including a number under the title of JBL Lifestyle homes and construction with ‘building projects’ listed as the nature of business and incorporation taking place between October and December last year.

Creditors

The administrators say rescuing the company is not viable and instead they will sell assets, such as land at Tram Road in Folkestone which Sunningdale House holds the freehold for, to pay secured or preferential creditors.

The amount owed to company creditors comes to £46,168,926.

In addition West One is listed as being owed £4.5 million.

A number of Thanet creditors are listed including £2,000 owed to an individual in Birchington, £165 owed to Community Window & Dor Repairs in Broadstairs; £11,564 owed to Hume Planning Consultancy based at Discovery Park; £84 to James Mills Electrical Contractors in Manston; £5310 to Kent Construction Consultants from Margate; £6440 to Matthew White Illustration in Garlinge; £50 to P&P Windows Broadstairs; £1,500 to Phoenix Care Homes in Broadstairs; £1287 to Premier Signs in St Nicholas at Wade and £725 Pure Window Cleaning in Westgate. Ten Thanet residents are also among employees listed as being owed money.

There are also a number of people who paid reservation fees for properties who lost their money but do not appear to be on the creditors list.

A payment of £23,910.80 has been received by the company administrators in relation to Sunningdale House Developments (Tuckingmill) Limited.

The administrators have submitted a report on the conduct of the directors of Sunningdale House Ltd to the Department for Business, Energy & Industrial Strategy.

Investigations are also taking place that may reveal potential asset recoveries that could go towards paying creditors.

In Minster the Receiver has brought in contractors in to finish the empty houses prior to sale. A Receiver has also been appointed for the St Nicholas at Wade site.