The Liverpool Paramount Disaster
This project developer is Pinnacle (PA), whose holding company is Mason & Vaughan Group Ltd. PA has a number of affiliate companies including Pinnacle MC Global Network, Pinnacle Alliance and Hollinberry Estates, formerly named as Harper Brooks (UK).
This building was first launch in Hong Kong in July 2013, during which neither the freehold nor the planning permission belongs to PA. It only legally purchased both the freehold and planning permission on 18 Nov 2013, which was not a very decent business practice to start with.
PHD1 (07458065) the construction company dissolved on March 3, 2015 but PA has never informed buyers about this fact, but still use it for construction work and kept it from buyers until Feb 26, 2016, almost a year later. PA is really not trustworthy.
Apart from the Paramount, there are also other projects of PA running into similar situations including Liverpool Quadrant, Spectrum Apartments in Sheffield and Angelgate in Manchester. Most of the projects receive letters with similar content and exactly same request from PA within the same week!
To be united, Paramount Buyers please contact: Paramount.buyersgp@outlook.com
To the buyers of The Paramount，Liverpool
回覆刪除It is believed that we all are very concern about the progress and current status of the Paramount. Apart, there are lots of questionable points regarding the letter sent out from Pinnacle (PA) dated 16th August 2016. Upon the data gathering and consolidation during this period and a deep dive reviewing this letter, we find out there are few suspicious areas as below.
1. Misrepresentation
i. PA always states it is the responsibility of the builder PHD1 instead of themselves. However, PHD1 had been dissolved on 3 March 2015, why PA still hired them and paid the construction cost until Jan 2016. As per PA’s letter dated Feb 2016, it only mentioned the termination with PHD1 but not a word informing us that this company has already dissolved!
ii. Now PA threaten all of us the build could not be completed if we don't pay the balance of purchase price and release the first charge of freehold. Is this the responsibility of developer to monitor the development and progress of the site and ensure its completion? Since when it land onto buyer's shoulder?
iii. If we don't accept this propose option, we could sue the seller, however, they advised us not to take any legal action as there has no funds in the account. Are they a nasty guy apparently in this case?
iv. As per the letter, it mentioned that part of the buyers' funds have been used to buy the freehold, now they request the owners to surrender the first legal charge over the freehold, is this a reasonable ground of the request?
v. Are PA and PHD1 purely the relationship between developer and builder? As the bosses of both PHD1 and Sotheby HK, they both stated the fact that PA and PHD1 were 50% shareholding, were they the same group of people who manage this project? There could be a high chance the previous construction cost was overstated.
YES!
回覆刪除Pinnacle has changed the site plan in Dec 13, but never seek the consent from the buyers to add the additional car parks, not even mentioned a word of the additional number of units!
Also, as per the letter, they did not mention about the construction cost of additional 65 units (there are 17 units located in ground floor being superseded by shops, thus these units are placed indirectly from 1st to 10th floor) and 150 car parks are paid from Buyer Company(BC)’s account, there is a very significant big discrepancy to show the factual consumption of 95% of the total construction sum for completing 33% of total units only. Is the over spent of the construction due to the additional 150 car parks and 65 additional units? Why do buyers have to pay the balance of purchase price whereas the responsibility should be taken by the developer!
Totally agree!
回覆刪除Due to the extra 14.7% units have been added, this result in most of the units have been shrunken, the worst one shrunk more than 35% of original size. Why did PA not contact the owners proactively to raise the compensation scheme for remedial action?
From the beginning of purchasing freehold and built the site, up to this so called rescue solution are all accounted to Buyers, why PA did not propose to sale out car park? Why PA is not required to use a penny for the build? PA stated it has sold 5 investment items which should total more than £20 million as revenue, it has both the fund and responsibility to complete the build. It is undoubtedly that PA has failed its duty and obligations!
The Paramount project was launched in 2013 and proposed to be completed in 2014 Sep with the “Long Stop Date” at 2015 Sep. However, 2 years are over, the project is still not completed!!! No respect to contractual spirit!!
回覆刪除The Director Julie Harvey has been terminated from over 10 Pinnacle-related companies on Aug 22!! What happened to Pinnacle as a whole??
回覆刪除Spent £55000 to bought a nightmare。。。。。。。。。。Bad developer hired irresponsible Lawyer and sold properties through a liar agent.
回覆刪除Now they are talking about the cost of total sum £6.6 million to complete the project, in what ground they estimate this amount? Is this trustworthy? Could it cost only £3million instead of £6 million, or it underestimate the cost again and request additional payment in later stage by repeating same PHD1 disaster again?
回覆刪除PA did not provide detail on how and when the project to be completed. Importantly, they never provide any warranty or security for what they have proposed!
In fact, it's not only Paramount project, but 3 other projects also facing the same situation, all buyers money were used up and the build are far from completion.
回覆刪除It is very important for every buyer to link up together and discuss what to do and how to resolve the issue. Please contact Paramount.legalgp@outlook.com if you wish to get in touch with the buyers group.
I am a Paramount buyer. I also own a Grove House apartment.
回覆刪除After seeing all these things, a reasonable guess is that, Pinnacle's real owner, after earning money illegally, wanted to start a business to earn some (seemingly) easy big money legally.
Unfortunately, choosing PHD1 as the partner has made the situation terrible. That mistake might be the last nail of the coffin. I tend to believe that Pinnacle really wanted to complete all the projects just to keep earning money without much efforts (in terms of monitoring and managing the progress and everything) but then when things became uncontrollable, it is obviously possible that the boss of Pinnacle could get all the money and run away!
They are calling for extra funds at the same time from construction sites used to be in cooperation with PHD1. It is no longer whether the suggested plans from Pinnacle are feasible or not, but whether Pinnacle is still trustworthy.
I think it is better for us to think of what we can do if/when Pinnacle go bankrupted. For Paramount, we are slightly less unfortunate, as the construction works of Paramount is much closer to completion compared to Angelgate……
We are seeking legal advices at the moment, and taking over the project to finish the construction works might not be impossible. With the pledged funds we have, and the carparks unsold yet, it could easily be enough for finishing the construction works.
What we are not sure is that, whether other development projects have been affected. As far as I know, some projects are still ongoing, as usual in a delayed progress. But those with other constructors seem to be still running at least.
Now I hope there would be better ways out as most of us have totally lost our trust towards Pinnacle.
In one of the comments in Angelgate Buyer's Group's blog, an ex-employee of Pinnacle, as he claimed, reminded buyers that we should get prepared that the Company will go into liquidation.
I am optimistic though, for the remaining balance we prepare to invest into Paramount in total, it would not be difficult to have the construction works completed. I am just looking for a way to take over the control over the money and the building as buyers collectively.
Ms Cheryl, I support your view on a way to forward. However, what facing us are unacceptable terms (release of first legal charge and balance payment). Release of first charge would mean that we have nothing to claim back in any odd situation and even no firm ground to stand on as an investor. If Pinnacle sells the freehold or borrows money on credit of the freehold for any amount that exceeds the residual value of the land and the half-completed building, the new buyer (whom we pass our first legal charge) would claim all the residual value, and then we have nothing. Using a “reverse thinking”: if no value, why Pinnacle asks us to release? That is the last chip that we have in this nightmare investment! I think that we can loss, but we cannot let the bad guy to get anymore!
刪除Obviously Pinnacle does not have any business ethic. The relationship between the we buyers with Pinnacle is NOT a joint partnership. Practically they account a reasonable profit upon the sale of units, they must bear the risk and resolve the issue at their cost without any excuse. It is unacceptable for Pinnacle to have such adversely treatment to the buyers.
Pinnacle literally pay nothing to earn the freehold, the car parks, ground floor shops, 65 additional units and the remaining balance in Stakeholder Account £1.6 million surplus (total worth more than £13 million). This time, Pinnacle may utilise this construction quotation as an excuse to free up the freehold. Moreover, if you see the quotations from the new contractor, you would find that it is just another nightmare! Last but not least, all solutions are not being guaranteed and committed!!
As so many concerns and doubt listed above, it is very hard for any individual to find out the truth as this may be a commercial fraud underneath. As such, I would not reply to PA or my buyer solicitors. From the current situation and information, I would not agree to release my first legal charge of freehold and pay the balance of purchase price.
The important letter issued by Pinnacle on 2016.8.16 (asking for release of first legal charge and balance payment) is issued by “Client Service”. No one to sign and no name! How can an important letter be handled like that? I totally worry on the legal status of this letter. One day, after we paid the balance, they may say “who asked to do so?”! :-)
回覆刪除Julie Harvey, the Director of Pinnacle Student Development Ltd (08355864) since the start of the Paramount project, resigned on 2016.8.22! She has also resigned from all Pinnacle-related companies (like Anglegate) on the same date.
But on 2016.8.17, Carl William Mills was appointed as Director of Pinnacle Student Development Ltd (now the only current Director). Mr Mills should be very “powerful”, as he was also appointed as Director for more than 20 Pinnacle-related companies during 2016.8.7-17!
With this management change, I would really want to know how we can make our step further!
Where is the 'information pack' as promised during the presentation?
回覆刪除More and more lies and more and more disappointments!
The latest update is they will provide the pack together with the translated version on 3th October. Hope they can make it this time without further delay.
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刪除Hi Alan B,
刪除Could you inform us what's the volume you had for the materials? It'd be more convenient for you to contact us via email at Paramount.legalgp@outlook.com.
Hi Alan B,
回覆刪除Few queries would like to get advice from you :
1. What sort of facade materials you have in hand, Aluminium window extrusion, glass, gaskets etc. ?? What is the quantities as per residential unit (rather than per window).
2. What is the status of fabrication and production ? Materials being cut or still in raw materials status ? Painted or not ? Painted in PVDF or high performance powder coating ? or .....
3. How about the glass for the windows ? Also keep in your stock ?
4. . Any reference photos can be provided for review ?
If you are confident that PA will finish the job, I would suggest you to keep the materials which are sizes with custom-designed for the Paramount bldgs. I would like definitely 15/Oct/2016 would not get any answer, sorry to tell but this is realistic to say.
Regards.
LPL
作者已經移除這則留言。
刪除作者已經移除這則留言。
刪除Alan, thanks for your message. We are not sure what's the total contract sum PA has agreed with you, but very clear that we have not be given enough information to make decision. PA only provides us quotation from Gleeds which is not the actual cost quote to us to complete the build.
回覆刪除Another issue is it seems that you have been waiting for Pinnacle decision for long, but we are not responsible for the delay because Pinnacle only replied some, but not all of our inquiry by early October.
Most importantly, as you mentioned, your contract is with Pinnacle, not with us, and the amount you are requesting is not a big sum, if Pinnacle is really sincere to complete the build, they should be able to resolve this with you. It's not fair to put pressure onto buyers as we have been honoring our obligation to provide fund on time, and some of the buyers have already settled their full amount even their units were far from completion.
New sharing with you:
回覆刪除http://www.manchestereveningnews.co.uk/news/greater-manchester-news/hm-revenue-customs-raid-couples-13319832
On 28 Sep 2017, the Companies Court approved an Angelgate buyer's application to put Pinnacle (Angelgate) Limited into administration. This reflects that the past promise issued by Pinnacle (stating that it would build Angelgate) was not trusted by buyers. The lack of confidence on Pinnacle is due to its lack of progress from April to August of 2017, during which it claimed to have engaged a contractor to compile a bid. But 4 months had passed. The bid was not produced. Buyers chased Pinnacle but it remained silent.
回覆刪除anyone lost their deposit please sign up to https://pinnacleactiongroup.com/
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