The Downs is approximately 60% complete

LPA receiver David Currie & Co has been appointed to sell the 40-unit development in Altrincham after the peer-to-peer lender brought in trustees last week over “ongoing financial issues” .

The receiver must sell the project, which is 60-70% complete, in order to recover a charge for the developer Consensus Property.

The House Crowd, based in Altrincham, which offered bridging loans secured by land or property, purchased the Downs Quarter development site of the Consensus in 2019.

The £ 15million project, designed by Calderpeel Architects, includes 31 apartments spread over three blocks and eight townhouses.

David Currie & Co’s appointment follows that of business consultancy Quantuma as a director of The House Crowd and several other group companies.

On February 25, Quantuma was also nominated for House Crowd Property Management, House Crowd Finance and House Crowd Finance (security officer).

House Crowd Developments 23, the vehicle delivering the Downs Quarter project, is not itself under administration.

The House Crowd, founded in 2012 by Suhail Nawaz, has 3,700 active investors and has funded more than 400 developments with a combined value of £ 123.9million, according to Quantuma.

Frank Ofonagoro, Director of Quantuma, said: “Due to the continuing financial problems facing the company, the directors have decided that it would be in the best interests of The House Crowd and its creditors and credit investors to appoint directors. “

The administration is not expected to have a significant impact on investors and lenders, according to a statement from Quantuma.

The business advisory firm will “carry out the orderly liquidation of the loan portfolio and the repayment of funds to lenders,” he said.

Quantuma added that the impact the proceedings could have on The House Crowd’s 13 employees and the 15 developments the company is funding, including Fox Owl Rise – a 54-house program in Lees outside Oldham – is not yet clear.

Ofonagoro added: “Our priority now will be to achieve the best possible result for all parties. Where possible, this includes repatriating clients’ money, completing existing development constructions, orderly liquidating loan portfolios, and ultimately protecting the interests of investors and creditors.

Ofonagoro, Jeremy Woodside and Frank Wessely are the joint directors.