Firm behind squalid flats forced into administration owing £2.4m
PUBLISHED: 10:20 28 October 2019 | UPDATED: 13:07 28 October 2019
The company behind a controversial apartment block has been forced into administration after failing to pay back a £2.4m loan.
Administrators were appointed at Faiths Lane Apartments Limited, which owns 60 St Faith's Lane in Norwich city centre, after it failed to pay back a loan.
The 47-apartment block, off Prince of Wales Road, fell into such a squalid state that in October 2018 Norwich City Council ordered all tenants to leave for their own safety.
The landlord failed to carry out work despite repeated requests from the council.
It also failed to pay utility bills and in June E.ON served a winding up petition on the company.
Meanwhile another company owed £2.4m, Fiduciam Nominees Limited, appointed administrators to liquidate the firm.
It had not received any loan repayments since June, a report by administrators published last week said.
Nick Sutton, the sole director of Faiths Lane Apartments, has also ignored requests by the administrator to hand over the company's books, the report added.
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Other creditors are owed £100,000.
The administrator has put the flats on the market for £5.5m.
The building is currently being refurbished, according to an advert from estate agents abbotFox.
They described it as a "significant investment opportunity" and said the apartments have a potential income of £870,000 a year.
The council ordered tenants to leave last year came after months of complaints about mould, the state of electrics and heating.
This newspaper first reported problems faced by tenants in October 2017.
The landlords - married couple Nick and Ayse Sutton - are millionaire property developers, connected to the former Turkish Royal family.
Ayse, whose maiden name is Osmanoglu, is a princess of the family which once ruled the Ottoman Empire.
She describes herself as an interior designer and calls herself Princess Ayse Sutton on Companies House where she is a director and shareholder, along with her husband, of a firm called Imperial Property Company (Holdings) Ltd.
That firm was the majority shareholder of Faiths Lane Apartments Ltd.