Questions for Devon Block Management as solicitors appointed by Azure residents

A Beagle exclusive report

The Azure apartments

Hundreds of people living in the luxury Azure apartments on Plymouth Hoe are potentially thousands of pounds out of pocket and have serious questions to ask about their former managing agency, Devon Block Management (DBM).

Morgan Sindall, the contractor carrying out fire safety cladding work on Azure South, raised the alert when invoices totalling nearly £500,000 were not paid.

DBM was managing the stage payments for the work, and at one point, just before Christmas, Morgan Sindall was reportedly hours from downing tools and walking off-site.

HM Treasury stepped in with an emergency loan to cover the unsettled invoices and to ensure the work was completed, with the Azure residents technically liable now to repay the debt.

Meanwhile, the cladding work at Azure South, which cost £6 million, has now been finished and the scaffolding is being removed this week.

The routine maintenance contract for the Azure, which costs residents a total of more than £20,000 per month, has now been awarded to Atwell Martin.

However, despite Atwell Martin seeking the transfer of bank accounts from DBM, they have not received funds - meaning all routine work such as cleaning and general maintenance, paid for by residential service charges, has been halted. Azure apartment owners or residents have been asked to volunteer £1,000 each to help keep the building's basic services and insurance policies in place.

The residents of the Azure blocks have repeatedly tried to obtain information from DBM, but numerous meetings have been cancelled. They issued a "7-day demand" to DBM, but this was ignored. They have now instructed Michelmores solicitors to act on their behalf.

The Azure residents' committee directors have asked Michelmores to help them:

• recoup the most recent service charges, which were invoiced for by DMB on Christmas Eve and total more than £100,000,

• access the Azure's contingency fund, said to total more than £200,000

• and view bank statements detailing grants for the cladding work, and the stage payments to Morgan Sindall.

In a further blow for people living in the luxury apartments, the Azure has been snared in a national issue involving Tri Fire Limited, which issued its safety certificates.

Mortgage lenders, including NatWest, HSBC and Nationwide, are refusing to offer loans on properties with Tri Fire certificates while investigations continue into the actions of the company’s director, who has been accused of unprofessional behaviour, leaving the flats "un-mortgageable" and for sale only to cash purchasers.

The Beagle contacted Devon Block Management, based in Stonehouse Street, to ask:

• What issues prevented payment of funds to Morgan Sindall in relation to work at Azure apartments?

• In February, your solicitors (Ashfords) said your bankers (NatWest) were close to issuing a £500,000 facility. Why has this not happened?

• Why will DBM not allow the directors of the Azure to see bank statements, or to access the contingency fund, or to see statements relating to payments in and out for cladding work?

• Are other blocks managed by DBM facing similar circumstances to Azure residents?

Devon Block Management replied: "Currently we are awaiting the new agents to write to us and request the usual transfer information, which includes the financial element, we would then transfer this in the usual way. This gives clarity on the information and audit trail. There is also an ongoing contractual issue between the Azure Management Company Ltd solicitors and Devon Block Management Solicitors. Devon Block Management Ltd is owed funds from the Azure Directors, where they have signed an agreement."

Devon Block Management has also managed properties including Armstrong House, Sutton View, The Grand, and The Astor.

If you have a comment on this article, email: contactthebeagle@gmail.com