Original developer of Worcester BTL flats falls into administration

The letting agents for Worcester’s first build-to-let development say tenants and suppliers are ‘unaffected’, after the scheme’s original developers entered administration.

A total of 213 apartments were built as part of the first phase of the Sheriff’s Gate development in Worcester’s Shrub Hill area, which is now under new ownership, having sold to new owners Farlane Capital in April.

Matthew Mills and James Saunders of KR8 Advisory Ltd in Manchester were appointed administrators to original developers Sherriff’s Gate Ltd on 7 October.

The administration relates specifically to Sherriff’s Gate Ltd, the company responsible for the phases two, three and four of the development.

“The insolvency appointment over Sherriff’s Gate Ltd is unrelated to the current ownership and recent media reports announcing the administration have caused significant distress to our tenants and suppliers,” said Grant Livingston, managing partner of London investment firm Farlane Capital.

“The Sherriff’s Gate administration relates to the company that holds phases 2, 3 and 4 of the development.”

The new joint administrators have taken over the case from insolvency firm Leonard Curtis in London, which had been acting on the case since November 2024.

Planning permission for the Sheriff’s Gate regeneration, which is Worcester’s first built-to-let development, was granted in 2022. The scheme was launched by Worcestershire estate agency, Nicol and Co, in March this year.

A total of 185 apartments on the original scheme have now been occupied.

“Sherriff’s Gate has been in different hands since April 2025 when it was sold to Farlane Capital Ltd and there is absolutely no risk to existing tenants or suppliers at all,” said Matt Nicol, managing director of Nicol & Co.

“We’ve let 185 units in the space of six months which has helped to plug a gap on the lack of housing. We have only 28 left and we are on target to be fully leased by the end of the year.

“All are private tenants. Many work in the public sector such as Worcestershire Royal Hospital along with some pro athletes and the community down there is very warm and welcoming.

“Due to red tape, the co-working/co-living space has been delayed against everyone’s hopes, but we remain optimistic a solution can be found.”