PIAM Blackpool aimed to make a profit through the purchase of buy-to-let investment property in the Blackpool area.

The way it would do this was from capital gain of the properties bought and the differential between the mortgage and the rents. 

PIAM Blackpool would purchase properties which were pre-converted blocks of self-contained flats, which were sometimes refurbished prior to rental.

The developer would rent to DSS and private tenants, with the rents having to cover the mortgage at a pre-assigned interest rate by over 150%. 

However, PIAM Blackpool has revealed via Companies House that administrators in the form of Kerry Bailey and Ian J Gould of BDO LLP have been appointed.

National Westminster Bank appointed the administrators due to PIAM Blackpool not being able to repay its debts. According to Companies House, PIAM has six outstanding charges.

The administrators will now manage the administration of PIAM Blackpool. 

“Unfortunately the economic climate and difficult trading conditions significantly affected the Company’s working capital position,” said BDO.

“The company did not have any employees.  

“BDO is continuing to investigate the affairs of the company with a view to realising assets for the benefit of creditors.”