England

Developer faces court action as care homes never open

High Littleton
Image caption Carlauren bought properties like this one at High Littleton near Bristol but it has never opened as a care home

A developer that wanted to set up a network of luxury care homes across England is a facing court hearing after many of them never opened.

The High Court is due to hear an application to put Carlauren Group into administration later this month.

Administrators claim up to £50m is unaccounted for but Carlauren's chief executive Sean Murray has denied this.

The court will hear that investors from around the world are said to have put a total of £76m into projects.

Image caption Carlauren Group planned to turn Windlestone Hall into a luxury care home and investors from around the world bought into the project

Properties which have never opened include Windlestone Hall, near Bishop Auckland, County Durham, which Carlauren bought for £850,000 in 2017.

Investors were promised a regular income that would be paid for from care home residents' fees - but the property is still empty.

Income was paid out monthly, even though the property was still derelict, with no care home facilities or residents.

Image caption Investor Arif Ebrahim said he had been "forced to sell his house"

Arif Ebrahim, who lives in South Africa, invested £200,000 including into one Somerset property and said he doubted he would get his money back.

He said: "I took out a hefty bond for all these assets that I purchased in England. Unfortunately, now the income has stopped I cannot service my bonds and I have been forced to sell my house."

Image caption Carlauren chief executive Sean Murray has written to investors recently saying no money had gone missing

Carlauren's chief executive Sean Murray declined a request for an interview but told BBC reporter Clinton Rogers in a personal text: "We are in a position to solve all the issues we are facing but we are being tripped at every hurdle."

Related Topics

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites