High-rise living a let-down for purchasers of tower block flats

ANGRY purchasers of apartments in a landmark block which promised top specification city living yesterday called on developers to meet with them to discuss a series of problems with the project.

The St Paul's Tower in Sheffield – previously known as City Lofts – was first marketed in 2006 as the city's tallest and most iconic building, and promised luxury Conran-designed flats.

At 32 storeys, apartments in the tower were supposed to offer views of the city and the Peak District, but many people who signed up initially are now unhappy with what was delivered.

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The company which started the development, City Lofts, fell victim to the recession and there was some concern in Sheffield that the building may remain unfinished for the foreseeable future.

But a nationalised German investment bank, Hypo, stepped in and a loan was granted by regional development agency Yorkshire Forward to allow the 38m project to continue.

Problems also arose when the developer decided to change the type of cladding which was being used on the side of the building, which led to city planners calling for work to stop.

Several weeks ago, the construction partner in the project Shepherd Construction, announced the tower was finally finished – but this was around 18 months late, according to buyers.

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They say the development has also been finished incorrectly in many cases, leaving purchasers with apartments which do not match the plans and the promises they were made in 2006.

One of the major issues is with the cladding, which means that some apartments, which still range in price between 124,000 and 243,000, have half-height windows when plans showed floor to ceiling glass.

Concerns have also been raised that buyers may not be able to raise mortgages to pay initially-agreed prices because banks and building societies will only lend based on today's values.

Judith Sunderland, who is a member of the newly formed St Paul's Action Group, said she was one of the first people to sign up to live in the tower at an open day in November 2006.

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But she described her two-bedroomed apartment, which will cost about 200,000, as a disappointment and added: "The major problem is that nobody from the developer is willing to talk to us.

"I was one of the first people there in November 2006 and I put down a deposit. I was told the tower would be complete at the end of 2008 but at the end of 2010 the building is still not ready. We know it has been announced as complete, but there are a number of apartments that have been subject to considerable change, including mine."

The action group says a mix of investors and individuals who have signed up to purchase the apartments feel that the building has become a victim of poor design, planning and build issues.

Purchasers said they felt "aggrieved" by the way they have been treated and claimed that the "lack of communication and the disrespectful manner in which purchasers have been dealt with cannot be underestimated".

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Ms Sunderland said: "The living room in my apartment has been shortened by three-and-a-half feet and there are several other people in the tower who have similar issues.

"But there has been no dialogue. We have tried to contact the developers but there has been nothing coming back. I tried to write to them via the marketing suite but I was told I should contact them through my solicitor."

Some purchasers are now receiving notices of completion on their apartments and claim that they have been told they will be pursued legally if they do not sign up at 2006 prices.

In a statement, the action group said: "As individuals, we feel powerless in the face of the inflexibility and lack of communication of the developer's approach. We believe that we have not been treated fairly or reasonably and, therefore, we must now act as a group.

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A spokesman acting on behalf of the developer said: "Our client has contracts with individual buyers and is dealing with them through DWF and its agents, Knight Frank."

Project beset with problems

The St Paul's Tower is a 32-storey block in Sheffield city centre. At 101 metres tall it has overtaken Sheffield University's arts tower as the tallest building in the city.

Last year the future of the project was hanging in the balance after the original developer, City Lofts Group, went into administration.

Millions of pounds from regional development agency Yorkshire Forward was then used to bail out the scheme. The money was in the form of a loan but will only be repaid if City Lofts' backer, nationalised German bank Hypo Real Estate, makes a profit from the development – which is viewed as unlikely.

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