Mylecke NV’s Surprise Over Leas Pavilion Sale Raises Questions

It should come as no surprise to Mylecke NV that the Leas Pavilion site is now listed for sale on Rightmove. The circumstances leading to this outcome are clear and traceable, particularly given the financial history of The Leas Pavilion Development Ltd (LPD Ltd), the company responsible for the project, regardless of what they say in the Kentonline article

To provide context, LPD Ltd was incorporated on 24 November 2020, with Olivier Daelemans (pictured) as its sole director at the time. On 26 February 2021, Mylecke NV, a Belgium-based company, joined as a director. On 4 April 2022, LPD Ltd secured a loan from Octopus Real Estate S.Ar.L, based in Luxembourg. Given Mylecke NV’s directorial role in LPD Ltd, it is reasonable to assume they were aware of this borrowing.

Subsequently, on 23 December 2022, LPD Ltd obtained another loan, this time from Tab Acm Limited. Again, it is logical to infer that Mylecke NV, as a director, would have been informed of this transaction. While the April 2022 loan was repaid on 27 February 2023, the debt owed to Tab Acm Limited remains outstanding.

On the 1 Sept 2024, Olivier Daelemans ceased to be the person with significant control of LPD Ltd. On 2 September 2024, Olivier Daelemans resigned as a director, leaving Mylecke NV as the sole director and the person with significant control of LPD Ltd. By 31 October 2024, Tab Acm Ltd placed LPD Ltd into receivership due to non-repayment of the loan. This sequence of events is straightforward and leaves little room for ambiguity.

Given this timeline, Mylecke NV’s claim of being in “complete shock” over the site’s listing on Rightmove is difficult to reconcile with the facts. As the sole shareholder and director of LPD Ltd, Mylecke NV would have been directly contacted by Tab Acm Ltd regarding the outstanding loan. Furthermore, any assertion that Mylecke NV had an agreement with a lender to “fund the entire project” appears questionable. A basic credit check would reveal LPD Ltd’s significant debts, and Companies House records would confirm the company’s insolvency status as of the 31 Oct 2024. These factors make it unlikely that any credible lender would extend further financing to LPD Ltd, especially as the assets belong to TAB Acm Ltd, and the insolvency practioner is tasked to sell them.

The assets include:

• No. 7 and 8 The Leas,
• No. 1-4 Longford Terrace,
• 2 Cheriton Place,
• The Leas Club, The Leas, Folkestone, Kent, CT20 2DZ (Title number TT124667).

This outcome aligns with predictions made as early as April 2024, when it was stated that LPD Ltd would be unable to complete the development due to financial difficulties. At that time, Olivier Daelemans was actively seeking funding but failed to secure sufficient  capital to finish the entire project. By September 2024, Daelemans resigned, and by October 2024, the company collapsed under the weight of its unpaid loans.

The financial realities of the project further underscore its unviability. With construction costs estimated at £890 per square foot and a total building area of 104,000 square feet, the total development cost would amount to £92.56 million. Spread across 91 flats, this would require each unit to sell for over £1 million—a figure that was clearly unsustainable in the local market.

Liz Mulqueen, Chair of the Friends of the Leas Pavilion campaign group (pictured), was informed by Mark Quinn of Quinn Estates and other developers that the project’s financials were unworkable, leading them to decline involvement in the project prior to LPD Ltd involvement. Despite this, Mrs. Mulqueen continued to advocate for the project. While she cannot be held responsible for LPD Ltd’s failure to meet its financial obligations, the result is a derelict site that remains an eyesore with no immediate prospects for development.

Ultimately, the responsibility for LPD Ltd’s collapse lies with Mylecke NV;  one of whose directors is named in the Paradise Papers. It should come as no surprise to Mylecke NV, the site is for sale. And their claim of being “completely shocked” should be taken with a pinch of salt, considering their central role in the project’s financial mismanagement.

The Shepway Vox Team

Dissent is NOT a Crime