BUY-TO-LET investors left out of pocket by the collapse of a development company have raised concerns about the firm now in possession of the building.

Former council office Olicana House, in Little Germany, Bradford, was being turned into flats by Absolute Living Developments (ALD) when it went into liquidation earlier this year, sparking an international investigation.

In total, 49 flats at Olicana House were incomplete, despite buyers paying sizeable deposits for them.

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The building is now in the hands of another company called DS7, which had been a secured creditor in the project.

DS7 has since applied for planning permission to create an extra 19 flats in the building, but a group of Hong Kong-based investors who had been buying the flats from ALD have lodged objections.

A statement sent in on behalf of a group of Olicana investors complains that DS7 had involvement in the original failed scheme.

And another objector calls for Bradford Council not to approve the scheme, saying any changes to the status of the building “may jeopardise the investigation by law enforcement officers”.

DS7’s director, Charlie Cunningham, told the Telegraph & Argus his company wanted to complete the project and was willing to work with the original purchasers of the flats to do so.

Mr Cunningham said DS7 had taken possession of the building, as mortgagee in possession.

He said DS7 had been funding the construction work at Olicana House, and had invested a “substantial amount” in ALD’s project, but declined to say how much.

He said: “Construction was under way, it was firing on all cylinders up to the point where we discovered ALD had gone into liquidation. We still funded it a little after that.

“As soon as we discovered ALD was in liquidation, we contacted every single person who had invested in Olicana House, both through the lawyers and directly where we could, where we had their contact details, to agree a new process.”

He said under this plan, everyone could work together to see the scheme through.

He said: “So far, we haven’t had much response to that, but we are hoping we will start to see some results to that.”

Asked whether DS7 would honour the deposits paid by investors buying flats, he said: “That is absolutely what we are trying to achieve.”

It is understood the rescue plan involves the buy-to-let investors paying more money into the project before the completion of their flats, which some investors have told the Telegraph & Argus they are not willing to do.

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