Paul Godfrey: How a Developer’s Dream Became a Nightmare

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A luxury property development meant to rejuvenate Kilburn High Road has turned into a financial disaster, leaving a trail of debts exceeding £26 million. At the center of this collapse is developer Paul Godfrey, whose grandiose promises failed to materialize, devastating creditors, homebuyers, and local businesses alike.

Last month we reported on buyers who purchased luxury flats and said they ended up living ‘in a construction site’. It has now been revealed that the developer went into administration owing £26million.

The Rise and Fall of Park Place

Park Place, a luxury apartment block envisioned as a catalyst for regenerating Kilburn High Road, was heralded as a lucrative venture expected to generate over £10 million in profit. Strategically located ten minutes from West Hampstead station and overlooking Kilburn Grange Park, the project seemed poised for success. However, instead of revitalizing the area, the development has become a cautionary tale of mismanagement and financial ruin.

In 2017, Paul Godfrey secured a £19 million loan from OakNorth Bank and raised an additional £13 million from other sources to fund the project. He established 254 Kilburn HR LLP to oversee the development, with lofty claims of spearheading high-street regeneration. However, by December 2020, the venture had spiraled into insolvency, leaving OakNorth Bank and other creditors in the lurch.

Godfrey London’s website said Park Place, overlooking Kilburn Grange Park, would be a ‘luxurious, immaculately detailed’ development. 

A Nightmare for Buyers

Homebuyers who placed deposits as early as 2018 were promised occupancy by spring 2019. Instead, they found themselves trapped in a nightmare of delays and excuses. Many have faced financial hardship, with one buyer lamenting the “massive impact” on their life and another estimating losses of nearly £25,000 in rent and legal fees. Even those who managed to move in described their experience as living “on a construction site,” as the development remained unfinished.

Mr. Godfrey attributed the delays to external factors such as Brexit, COVID-19, and restrictive planning conditions imposed by Camden Council. The council had stipulated that buyers could not move in until a housing association took on the project’s affordable housing units. When the chosen housing association withdrew due to economic uncertainties, the project was thrown into further disarray.

Barnet Council’s planning committee has granted Paul Godfrey’s firm Moxon One Limited, to replace Intec House, in Moxon Street, with a block of 92 flats

Financial Fallout

The financial implications of Park Place’s collapse are staggering. OakNorth Bank, the primary lender, is owed £25.52 million. Her Majesty’s Revenue and Customs (HMRC) is another major creditor, with more than £500,000 in unpaid taxes. Local businesses, including family-run flooring company Floorcraft, are among the 70 creditors left unpaid. Floorcraft owner Steve Long, owed over £88,000, expressed his frustration: “It’s a significant sum, and it should be paid.”

Despite the grim outlook, Paul Godfrey disputes the administrators’ assessment that OakNorth will not be fully repaid. He claims the project could still be completed in a way that maximizes returns for creditors. However, with 254 Kilburn HR LLP and its associated construction company, Godfrey Construction (London) Ltd, both in insolvency, these promises ring hollow.

The Collapse of Godfrey Construction

Godfrey Construction (London) Ltd, the entity responsible for building Park Place, went into liquidation in September 2020, leaving behind debts exceeding £3 million. Among its creditors were major utility companies like British Gas, BT, and EDF, as well as HMRC. Despite this financial chaos, Paul Godfrey maintained that the company had “successfully completed” all its developments before its collapse. However, creditors and affected parties remain skeptical of such claims.

New Ventures Amid Old Debts

Shockingly, despite the catastrophic failure of Park Place, Paul Godfrey is pressing ahead with another ambitious development project. Barnet Council recently granted planning permission for a seven-story mixed-use building on Moxon Street, Chipping Barnet. The proposed development, which includes 92 flats and 730 square meters of commercial space, has sparked outrage among residents and local leaders.

Critics question how Godfrey, with his tarnished track record, intends to finance and complete such an ambitious project. One resident voiced their concerns: “With a track record of not repaying lenders, how is he going to raise the funding and reach completion for such an ambitious project?” Others have called for more stringent checks on developers’ backgrounds before granting planning permissions.

A Broken System?

While residents and creditors express outrage, Barnet Council’s planning committee defends its decision to approve the Moxon Street development. Councillor Tim Roberts, who voted in favor of the application, explained that the committee’s role is limited to evaluating planning criteria and not the applicant’s financial history. However, he acknowledged the need for more rigorous background checks in light of the Kilburn debacle.

This lack of accountability highlights systemic flaws in the planning and development process. Developers like Paul Godfrey can leave a trail of financial devastation yet continue pursuing new projects with little to no oversight. This raises pressing questions about the responsibilities of councils, banks, and other stakeholders in safeguarding the interests of buyers, creditors, and communities.

Lives Left in Limbo

The human cost of Park Place’s failure cannot be overstated. For buyers, the dream of homeownership has turned into a prolonged ordeal marked by uncertainty, financial losses, and shattered trust. For creditors, the collapse has meant unpaid invoices, disrupted operations, and financial strain.

Floorcraft’s Steve Long encapsulated the broader sentiment: “It’s just very, very disappointing.” This disappointment is shared by countless others who placed their trust in Paul Godfrey’s vision, only to be let down by his inability to deliver.

Conclusion

The collapse of Park Place serves as a stark reminder of the risks inherent in luxury property developments. While developers like Paul Godfrey enjoy the freedom to pursue new ventures, the consequences of their failures are borne by creditors, buyers, and the community. Without stricter regulations and greater accountability, such stories of financial ruin are likely to repeat.

As OakNorth Bank and other creditors brace for substantial losses, and as residents of Kilburn grapple with the fallout, one thing is clear: the legacy of Park Place is not one of regeneration but of broken promises and financial despair. Moving forward, stakeholders must demand greater transparency and responsibility from developers to prevent similar tragedies in the future.

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