Real Estate Sector Closure and Rescue Options

Welcome to our Real Estate Sector Hub, where we address the key challenges faced by the sector and tailored solutions to help companies overcome them.

Real estate companies provide services related to developing residential and commercial property and managing those properties, rented out or under leasehold. Rising operational costs and larger-scale economic issues can lead to challenges for companies in the real estate sector.

Each industry has its own challenges and sensitivities to consider when seeking insolvency advice. We understand every sector has its own pressures to factor into any proposed insolvency proceedings. By embracing a sector-specific approach, we can ensure that our guidance is tailored to your company and importantly the marketplace in which you work.

Featured industries

Our team of licensed insolvency practitioners has extensive experience in assisting companies with financial difficulties across all sectors. While we have experience working with a wide range of industries, we have also created dedicated pages to help with specific industry challenges within the real estate sector.

• Landlords and Property Management
• Estate Agents

How we can help rescue your real estate company

Below are two formal insolvency procedures, which would allow businesses in the real estate sector to continue trading while protected from creditor action.

• Repay your company debts in a payment plan via a Company Voluntary Arrangement (CVA)
  A CVA is a payment plan between a company and its creditors that allows you to restructure your company’s unsecured debts, while continuing to trade, by making affordable monthly payments over a fixed period. We start by assessing your company’s financial position, determining a realistic repayment amount. These terms are then proposed to your creditors and if approved, your company enters the repayment plan. When in place, all interest and charges are dropped and creditors in the arrangement cannot take further legal action. The process lasts for up to 5 years and on successful completion, any remaining unsecured debt in the arrangement is written off.
  More on a Company Voluntary Arrangement
• Restructure your company through administration
  Administration is an insolvency procedure for companies that are insolvent. Entering the procedure, your company will be in a temporary state of protection by a moratorium, that halts creditor action, including legal proceedings, giving your company the breathing space to continue trading. We will act as administrator and our primary purpose is to rescue your company as a going concern, attempting to restructure and turn it into a leaner more profitable organisation. If rescuing the company isn’t a viable option we will also look at the most appropriate exit strategies from administration, whether that be a potential sale of the business, assets, the whole company, or transitioning to an alternative insolvency procedure.
  More on administration

How we can help close and liquidate your real estate company

If you have an insolvent real estate company, liquidating your company would draw a line under its operations and write off its unsecured debts.

• Close your real estate company down via a Creditors Voluntary Liquidation (CVL)
  A CVL is a formal insolvency procedure designed for companies that are insolvent and have unmanageable debt. The process will formally close and wind up your company. A CVL will terminate payment arrangements, future payments, and when completed, will write off the company’s unsecured debts and arrears. If eligible, employees and directors will be able to apply for statutory entitlements such as redundancy and holiday pay. If the company cannot afford to pay staff entitlements, claims can be made through the Redundancy Payment Services.
  More on a Creditors Voluntary Liquidation
• Close down your real estate company and start again via a pre-pack liquidation
  A pre-pack liquidation is a common term for a type of CVL, where a company’s assets are sold to a new company before the old company is formally liquidated. This is commonly known as a pre-pack liquidation. This approach enables you to continue trading your business, retaining key assets, keeping your customer base and business relationships, without any historical unsecured debts. You can also transfer your employees to the new company under TUPE regulations, ensuring their continued employment. In some cases, you may be able to reuse your company’s trading name, but this can be complex. We can advise you on these processes and how it works.
  More on pre-pack liquidation

Commercial finance for real estate companies

If your company’s cash flow is healthy but significant upcoming payments are putting a strain on your finances, commercial finance could be a viable solution. There are various finance options available to help manage one-time expenses, or to bridge gaps in incoming payments. Speak to us for a more detailed breakdown of which commercial finance options might be the best fit for your company.

How to get in touch with us: The next steps

If your company has debts and is facing insolvency, it’s important to understand the different closure and recovery options available. We have experience of helping different industries within the sector and can offer a comprehensive explanation of the options available to you, and our experienced consultants will look at tailoring our processes to your company’s situation.

Speak to our initial advisers, who can advise you on your company’s solvent position and outline the options best suited to its circumstances.

1. Contact our initial advisers:
   Speak via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
2. Arrange a consultation:
   During a meeting with one of our consultants, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available.
3. Next Steps:
   After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

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