Leas Pavillion: Time to sell or liquidate.

The Leas Pavillion remains unfinished. It was granted planning permission on the 27 November 2020. To date all we have are the twin elevator towers protruding above the hoarding around the site.

The registered owners of the land are Leas Pavillion Development Company Ltd according to the Land Registry. They paid £298,400 on 14 May 2021 for No 7 & 8 The Leas, 1 to 4 Longford Terrace, 2 Cheriton Place and The Leas Club, The Leas, Folkestone.

The company has two person of significant control. They are Olivier Georges Jacques Daelemans (pictured) and Mylecke Nv whose address is: Grasstraat 6, Grasstraat 6, 9770 Kruisem, Belgium, and has three directors. The accounts for Mylecke Nv make it clear they have total assets of €141.114.110 – approx £120m.

We have reported previously that the total costs for the project according to the Financial Viability Assessment (FVA), was £40,751,973, with a profit of £2,439,289. This makes for a 6% profit when the normal profit margin is 20%.

However, when Mr Daelamans was scrabbling around for money early this year, we know from a whole host of sources, that he made it clear the per square foot costs were £890. Now given the site has 104,000 square foot, the build costs are 890 x 104,000 = £92,560,000. This a 127% increase from the FVA; which means the site is clearly unviable. It is also no doubt the reason why the building remains unfinished and why only an idiot, in our humble opinion would invest into the building, but you can make up your own mind.

Let’s not forget Leas Pavillion Development Company Ltd has borrowed money from Luxembourg, how much exactly is not known. Despite protestation from the Friends of the Leas Pavillion headed up by Liz Mulqueen (pictured) that the building will be finished; she has stated:

” the Pavilion structural frame will be rebuilt by the end of June, so that they can continue building upwards from beginning of July.”

July has come and gone and no progress has been made. 

The Leas Pavillion may not have gone under on paper, as Mylecke Nv has assets of £120m. However, not all this will be cash, or liquid assets available for quick disposal to pay for the Leas Pavillion rebuild. As such we honestly believe, the company – Mylecke Nv – is not in a financial position to contribute significantly to the completion of the Leas Pavillion. This means the company – Leas Pavillion Development Company Ltd – has in our opinion gone under, not on paper, but in the real world, where everyone can use their eyes to see that the site has not progressed, since we last wrote about it, in April of this year.

We suggest the Leas Pavillion Development Company Ltd, either try to sell the site with immediate effect, or put the company into administration; which would potentially allow a developer, who has the money and expertise, to finish the site.

Olivier Daelemans has been contacted for comment, but at the time of publishing Mr Daelemans has used his right of silence. If perchance he responds, we will, of course, publish his comment.

The Shepway Vox Team

Dissent is NOT a Crime