Property Rescue of a Student Development with Safety Issues

The Challenge

Cirrus Property Group were involved in the delivery of a significant remediation of a fire safety issue which threatened the closure of a purpose built student residence

The project featured a large student accommodation development facing severe cladding issues, where total cost to remediate exceeded £4m, accost which was to be borne by individual leaseholders in the property.

Background

The student development was completed in 2015 and featured modern amenities aimed at attracting both domestic and international students. In 2017, following the Grenfell Tower fire tragedy, the UK government introduced stringent regulations regarding building cladding materials. An assessment of the student development revealed some significant issues which required remediation.

This created a major challenge both for stakeholders in the property, which included the leaseholders, the freeholder and the property management company.

The significant cost challenge involved meant raising the required funding via leaseholders, many of whom were retired or based overseas, was a particular problem. Many owners were reluctant or indeed unable to provide the funding which jeopardised both the project to remediate, or indeed the future viability of the property as a whole, and indeed the ability for owner to sell their units given the associated risks.

Cirrus Engagement

Cirrus Property Group engaged with the relevant stakeholders, particularly leaseholders to map a financial solution, allowing those who were unable to pay to exit the scheme. This process ensured that the project was fully funded, in turn creating confidence amongst contractors, operators, and remaining leaseholders that these issues could be addressed.

Outcome

After a project taking over 15 months the building achieved full compliance with fire safety regulations.

Effective financial management from the property management company ensured that the project did not overrun its budget.

Proactive measures and transparent communication helped maintain the property’s reputation.

Positive feedback from stakeholders reinforced the property management company’s commitment to safety and quality.

Regular communication and timely updates maintained trust and confidence among tenants and their families.

Minimal disruption to students’ academic lives through careful planning and coordination.

The property remediation of the purpose built student development demonstrated the importance of swift and comprehensive action in addressing safety concerns. Through effective planning, stakeholder engagement, and diligent execution, the property management company was able to ensure the safety of its tenants, comply with regulatory standards, and maintain its reputation as a trusted provider of student accommodation.