A real estate business that started life as part of a controversial North East development company is set to take on some of the high profile schemes started by its former parent company.
Hadrian Real Estate was originally part of the Newcastle-based High Street Group, the company responsible for the city’s highest building, Hadrian’s Tower.
High Street Group has endured a tough recent period which saw one of its subsidiaries being wound up by an investor, accounts being substantially delayed and auditors resigning over lack of access to financial information.
Read more: prominent schemes change hands
Hadrian Real Estate started life as a company called High Street Group plc, before being bought by former High Street Group Residential managing director Gavin Fraser and changing its name earlier this month.
The new firm is employing a number of former senior and other staff from High Street Group, and has declared that it is targeting private sector rental developments in North East, North West and the West Midlands – the same areas covered by High Street Group.
In addition, a number of High Street Group loan note holders – who voted in June to waive the right to early redemption of investments – have been given shares in the Hadrian as part of a deal proposed when the company was still part of High Street Group.
But Hadrian insists it is entirely separate from the High Street Group, and is focussed on new projects as well as schemes started by the former parent company.
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Chairman Andrew Marsh said: “We’ve looked at some of the assets that the High Street Group has and we’ve asked which schemes fit the portfolio of our company.
“We haven’t finished the details yet and we’ll announce them, but we are looking at those schemes that compliment the pipeline and the strategy we’ve already built up in Hadrian Real Estate.”
Mr Marsh said that Hadrian had structured the new company like a plc, including an investment committee and a finance and audit committee, to add safeguards when considering future developments. He said Hadrian would be “fundamentally different” to High Street Group.
London-based investment group Edmond de Rothschild announced earlier this week that it had acquired the former Brett Oil site in Gateshead from a subsidiary of High Street Group. It has also acquired other High Street Group properties elsewhere in the country.
It’s also believed that control of High Street Group’s high profile Strawberry Place development – close to Newcastle’s St James’ Park – has also changed hands after being taken over by a finance provider.
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