Limelight is a purpose-built student accommodation development in Liverpool, acquired mid-construction by Blacklight Capital Partners (BLCP). The site was secured at an early stage following the appointment of administrators, with BLCP selected as preferred bidder by Mazars after the previous developer was unable to progress the scheme under a fractional ownership model.
Acquiring a part-constructed PBSA development presents a distinct set of risks, particularly where continuity of build quality, existing warranties and lender confidence are concerned. In this instance, BLCP retained the original subcontractor team, maintaining continuity on site and ensuring that all warranties were either preserved or enhanced as part of the acquisition strategy.
A structural warranty is a critical consideration on projects of this nature, particularly where a replacement policy is required following a change in ownership. Providing protection against latent defects in design, materials or workmanship, the warranty plays an important role in supporting funding requirements and providing assurance around the long-term performance of the completed asset.
Zerum were appointed as specialist Project Management and Cost Management consultants to oversee delivery, while J3 Advisory were appointed immediately following BLCP’s acquisition of the site. J3 Advisory’s role extended beyond sourcing and placing the replacement structural warranty to include the ongoing management of structural warranty surveys and after-sales support throughout the remainder of the build.
Early involvement allowed J3 Advisory to work closely with the wider project team, ensuring continuity of cover and minimising disruption to programme or funding timelines. J3’s liaison service for high-value and complex projects helped reduce the risk of delay in the issuance of final certificates, supporting timely insurance sign-off at project completion.
”We're immensely proud of the successful delivery of the Limelight project, and a special mention goes to the outstanding teams at Zerum and J3 Advisory. As a special situations investor/developer, we excel in navigating complex projects like Limelight and this is in part due to our strategic partnerships with specialists such as Zerum and J3 Advisory, ensuring a smooth journey to practical completion. We are well-funded to bring forward an active proprietary development pipeline in the PBSA and residential rental sectors and will additionally continue to collaborate with investors facing challenges in their current projects, a trend increasingly prevalent in the current economic climate.
Tom BrownDirector, Blacklight
The structural warranty solution for Limelight supports both the delivery and long-term operation of the development, providing reassurance to lenders, investors and stakeholders. The project demonstrates the importance of early, specialist insurance input when navigating complex, part-constructed acquisitions and replacement warranty scenarios within the PBSA sector.