Administrators Teneo look to a third year to resolve completion of Peterborough's unfinished Hilton Garden Inn

Administrators have warned they are looking to secure a second extra year to oversee the sale of Peterborough’s partly-built Hilton Garden Inn.

Officials for Teneo say they expect to have to apply to the High Court for a further 12 months in order to complete the disposal of the £30 million hotel at Fletton Quays to Peterborough City Council.

If the request is approved, the new extension would run from October 12 this year for 12 months.

It means the administration period would have to run into a third year in a bid to finalise the arrangements in which Peterborough City Council would take ownership of the nine storey hotel on the banks of the River Nene.

Teneo was called in by the council in October 2023 after eight months in which according to the administrators, no construction work had taken place on the hotel.

Details of the pending future arrangements are contained in the administrator’s progress report that has just been filed at Companies House.

It states: “The administration was extended by the court on 10 October 2024 for a period of 12 months and will now end on 17 October 2025.

"We intend to request a further extension to the period of administration for a period of 12 months from 17 October 2025 to enable sufficient time for the sale of the property and associated materials to be completed, settlement of all administration costs, conclusion of all tax and VAT matters and distribution of funds to creditors.”

The council is the primary secured creditor having provided a £15 million loan to the developer in 2017 to build the hotel. With interest, the council’s loan stands at £17 million.

The local authority announced last month that it had found a prospective buyer for the 161-bedroom hotel.

But the administrator’s report states: “We previously reported that heads of terms had been agreed with a third party purchaser with a sale expected to complete in December 2024.

"Unfortunately the purchaser reneged on the heads of terms and withdrew from the transaction during December 2024.

"The council has advised they wish to acquire the property using a credit-bid strategy.

"The council is undertaking due diligence/preparatory work and we are hopeful the sale of the property will complete during the next report period.”