Signature Group behind failed Shankly Hotel investigated for £140m property fraud

The father or mother firm behind the failed Shankly Lodge in Preston metropolis centre is dealing with an investigation by the Severe Fraud Workplace.

Commercial

4 arrests have been made in Merseyside and Higher Manchester throughout Wednesday 21 February was three residences have been raided.

It’s a part of an investigation into Signature Group which the fraud workplace say might be chargeable for £140m of property fraud.

Learn extra: Shankly Lodge directors give replace on former Publish Workplace constructing progress

An announcement from the fraud workplace mentioned: “The Signature Group operated for over seven years, shopping for up predominantly historic buildings inside the UK for redevelopment into luxurious accommodations, residential residences and workplace areas.

“Buyers loaned cash to Signature or bought a resort room, condo or workplace area in one of many group’s properties, with promised returns on their funding of between 8% and 15%. The enterprise collapsed into administration with losses of as much as £140 million.

“Properties within the group’s portfolio included Millennium Home in Liverpool in addition to a cruise liner that was marketed as a “flotel” to be moored off Canary Wharf in London and journey to Ibiza.”

Learn extra: Snail farm claims over former BHS retailer in Preston metropolis centre

The Signature Group have been behind The Shankly Preston, which was because of be transformed right into a luxurious resort together with an occasions area on its high flooring.

Conversion of the previous Publish Workplace constructing, which was bought to Lawrence Kenwright and The Signature Group in 2016 by Preston Metropolis Council, began however was by no means accomplished.

The Signature Group fell into administration in 2022 and no new purchaser has but been discovered for the Outdated Publish Workplace website.

Earlier this month, Lawrence Kenwright and his spouse, have been each declared bankrupt. Kenwright was a director of The Signature Group and behind the Preston Shankly scheme.

Director of the Severe Fraud Workplace Nick Ephgrave QPM mentioned: “The scheme supplied enticing returns and used much-loved native landmarks to lure traders.

“We have now folks up and down the nation not noted of pocket, and buildings left derelict on the centre of our cities.

“The arrests and searches will assist us reconstruct precisely what occurred. That is now an lively felony investigation.”

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