Home to 900 students is in hands of administrator
RESIDENTS have been told not to panic after the company which runs a huge accommodation block went into administration.
KPMG has been appointed as administrators for some of the operations of the Opal Group, which is in financial trouble.
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Opal Scheme in Radford
The firm runs several student accommodation sites across the country, including one at St Peter's Street, Radford.
The site, which is home to 879 University of Nottingham students, has only been open for a year-and-a-half.
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Both the administrators and the university say the block will continue to run as normal.
A university spokesman said: "We want to reassure students that the administrators are continuing to operate this location (Opal Nottingham Ltd) as normal and students will continue to pay their rent as usual.
"Any rents that have been paid in advance by students will be honoured in full.
"The administrators are working with the staff to ensure all services and facilities continue without disruption."
The £48 million development off Ilkeston Road was opened in the summer of 2011.
It comprises eight buildings, a management suite, a gym and eight light industrial units.
According to its website and signs outside the building yesterday, bookings were still being taken for the 2013-14 academic year.
Student Paul Terry, 18, said: "I'm shocked to hear about what's happened.
"I like it here. It's in a great location, near to the bus stop to get into town and to get to campus as well. It has everything you need."
Adam Lamb, 18, added: "I'd recommend it to any students in future years. It's a really good place to be."
David Crawshaw and Rob Croxen, restructuring partners at KPMG, will oversee the administration.
They have insisted their appointment doesn't affect day-to-day operations.
Mr Crawshaw said: "Opal Group has been unable to sustain its financial commitments in very challenging economic conditions.
"Our primary aim is to avoid disruption or inconvenience to students and tenants at the sites.
" We are now in the process of detailed analysis of the finances of the business, with a view to stabilising their operations. We will make further updates as the case progresses."




19 Comments
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by mof_gedling
Friday, March 22 2013, 1:42PM
“the receivers can do what they like,nobody in their right mind would buy into such an oversubscribed market,obviously the local council might because they use other peoples money (yes that is a cheap dig at the council).”
by FormerlyW
Friday, March 22 2013, 10:37AM
“Why should the current residents look for alternative accommodation? It clearly isn't in the receivers' interests to kick them out and lose their rents. Any sale of the housing is likely to be as a going concern, and even if the new owners eventually decide to change the use of the property (which seems rather unlikely) it isn't going to be on the timescale of this year's student renters.
Or were you just trying to score a rather pointless anti-council point?”
by FormerlyW
Friday, March 22 2013, 10:35AM
“Why should the current residents look for alternative accommodation? It clearly isn't in the receivers' interests to kick them out and lose their rents. Any sale of the housing is likely to be as a going concern, and even if the new owners eventually decide to change the use of the property (which seems rather unlikely) it isn't going to be on the timescale of this year's student renters.
Or were you just trying to score a rather pointless anti-council point?”
by mof_gedling
Thursday, March 21 2013, 8:43PM
“i would start looking for alternative accommodation,it could be difficult due to council trying to force private competition out of business by moving the goal posts all the time.”
by Neo_MadBadger
Thursday, March 21 2013, 7:35PM
“Having said that, the most notable thing about your earlier post is like some here your clear anti-city council bias. There are a number of positives to building this type of student accommodation as is being done (as I outlined in my earlier post). Unfortunately your apparently blinkered dislike of the council and probably Labour judging by your previous output here prevents you from taking a balanced view.”
by Neo_MadBadger
Thursday, March 21 2013, 7:31PM
“I should 'buck up'?
"Perhaps Cliftononion just does not like students although that possibility makes me wonder why that might be so."
perhaps adverb possibly; maybe.
possibility noun (possibilities) 1 something that is possible. 2 the state of being possible. 3 a candidate for selection, etc. 4 (possibilities) promise or potential • This idea has definite possibilities.
may1 auxiliary verb (past tense might) 2 (sometimes may well) used to express a possibility
I raised the possibility as you seem to object to students being offered better, more modern accommodation in purpose-built properties in the city centre away from residential areas. As I outlined.”
by theCLIFTONION
Thursday, March 21 2013, 7:00PM
“Neo:
You're not often right.......but you're totally wrong again (your post, today, 6.05pm).
Sorry mate, you must be thinking of someone else.
Anyway, don't quite know how you can work out my attitude towards students from my earlier post today, which was mainly about the number and influence of 'corporate' landlords in the university sector nowadays.
Please pay attention and buck up.”
by Neo_MadBadger
Thursday, March 21 2013, 6:05PM
“I wonder if Cliftononion was one of the posters here, as some did, who previously ranted about the number of 'family homes' let out to students by private landlords and the way in which areas of Nottingham such as Lenton and Dunkirk and Beeston had become what some people termed 'student areas' and deprived families of accommodation? Now that these purpose-built properties have been / are being built, and not in those places, those same people are now moaning about this too, even though it may well free up 'family homes' to be let to families. Perhaps I'll do some searching of the Post's archives to see what Cliftononion made of the issue of student accommodation previously. Perhaps Cliftononion just does not like students although that possibility makes me wonder why that might be so.”
by smshogun
Thursday, March 21 2013, 5:22PM
“The issue doesn't appear from their student operations, the problems appear to be confined to their investment, property management, and commercial investment areas of operations due to the current economic situation. Student operations and hotel management still seem profitable at the present time.”
by theCLIFTONION
Thursday, March 21 2013, 5:16PM
“kenegie: Nice observation earlier on the student accommodation situation in Nottingham.
Opal Group operate 20,000 student lets throughout England on 'behalf' of the local universities, not just in Nottingham. They operate/own/run 994 student beds in Radford and another 723 student beds in Sutton Bonnington for the Nottingham Uni. Agriculture/Vet Schools there.
Opal is the 3rd biggest of its kind (specialising in student lets) in the UK.
In essence, they are 'corporate' landlords for student accommodation.
The biggest such company is the University Partnership Programme (UUP), which has 27,000 student lets in the UK, including 727 lets at NTU (Clifton site) and 2229 other lets in Nottingham for Nottingham University. Again UUP is a corporate landlord working in 'partnership' with the local universities and the Nottingahm City Council (see the UUP website).
The involvement of the City Council perhaps explains why there has been this lemming-like headlong rush to provide (perhaps 'overprovide' would be a better description) massive student blocks right across the city.
What has happened in effect, is that 'private' landlords have been replaced with 'corporate' landlords with the help/connivance of the City Council without anyone knowing about it. At least, when a private landlord went bust, only a few students were affected, not 20,000 across the UK as in the Opal case.
The same over-provision of 'appartments' happened in the City only a few years ago, and only came to an end when the bubble burst, and developers went bust.
Will these people NEVER learn?”