The General Counsel for Phoenix Commercial Property Development Ltd (PCPD), the company that has been associated with the derelict Ocean Hotel in Sandown since the demise of the Carlauren Group, is claiming there has been a ‘witch hunt’ against the company by Hampshire Constabulary and Isle of Wight council.
Tony Wilson, the General Counsel for PCPD, has told News OnTheWight in a statement that PCPD “have never been in a position to intervene with the site”, which, he says, is owned by a number of individual leaseholders.
In summary, PCPD purchased a reversionary freehold for the site in 2021. This freehold only comes into effect once individual leases on the site (there are 50) expire (in 125 years). PCPD claim the reversionary freehold was then sold by them in May 2022.
Two court cases
In February 2022, the Isle of Wight council issued a s.215 notice on the company to clean up and secure the derelict site. PCPD appealed the notice, which was rejected by the court.
Hampshire Constabulary also say they issued PCPD with a Community Protection Notice in June 2022 and then a summons to court again in July after they neglected to make the building secure. Something the company claim they have never had responsibility for.
Reversionary freeholder has “no rights to interfere with the proprietary interests”
Mr Wilson explains,
“Phoenix Commercial Property Development Ltd (PCPD) are not the owners of the Ocean Hotel. PCPD purchased the ‘reversionary freehold’ from the Joint Liquidators of the fraudulent Carlauren Group in 2021.
“This reversionary freehold only becomes ownership on expiry of the 125 year leases, sold in a complex fraud by Carlauren Group, to individual private investors.
“These leases cover the entire site. Furthermore, the site is also subject to two further leases which expire respectively in 2025 and 2026.”
Mr Wilson goes on to state that PCPD “had no rights to interfere with the proprietary interests of any of these leaseholders”. He said,
“Our purchase was purely speculative in the hope that it may be possible to acquire the freehold and develop the site. This has not been possible.
“PCPD is funded by defrauded investors in Carlauren Group simply seeking to recover some of the money they lost at the hands of Mr Sean Murray and the Carlauren Group.”
PCPD: IWC aware reversionary freehold sold in May 2022
The General Counsel for PCPD goes on to explain that the company sold the reversionary freehold of the site on the 31st May 2022.
He said,
“Isle of Wight Council have been on nothing short of a witch hunt, motivated by local politics.
“They are well aware, having been given evidence, that PCPD do not own the site nor have we at any time had the legal ability nor responsibility for its maintenance.”
IWC: PCPD own the Title Absolute of the land
A spokesperson from Isle of Wight Council told News OnTheWight,
“The Section 215 notices was served on land owners including Phoenix Commercial Property Development Limited on 28 January 2022 as they own the Title Absolute of the land in question.
“The Town and Country Planning Act provides a further right of appeal to the crown court if a party wishes to appeal the magistrate’s decision, but at this instance the council has not received any notice of appeal from the crown court.”
Wilson: PCPD never in a position to intervene
Mr Wilson went on to add,
“PCPD completely understands the frustration of local residents, but we were never in a position to intervene, it would have been a breach of the 125 year leases we inherited.”
He adds that PCPD had no choice but to appeal the s.215 notice issued by the local authority, which now sits with the Crown Court.
Legal action and Hampshire Constabulary
Mr Wilson also stated that a former Director of PCPD, Stephen Purvis, has taken personal legal action against Hampshire Constabulary and the CPS. PCPD say they’ll be supporting him with the provision of evidence.
He also added,
“They [Hampshire Constabulary] have never served a Community Protection Warning or Notice against PCPD, Sgt Sharland’s statement that PCPD has ‘acknowledged receipt’ is a misrepresentation that is the subject of a separate complaint to the IOPC.”
A spokesperson for Hampshire Constabulary told News OnTheWight the CPN was authorised on 13 June this year, adding,
“I can confirm that the company were served with a Community Protection Notice (CPN) and police are investigating an alleged breach of the CPN.
“We are aware of the company’s intention to appeal this action and we are reviewing this matter.”
News OnTheWight took that back response to PCPC, who replied,
“We can only speak to the facts as we find them. Hampshire Constabulary have not served any CPW or CPN on PCPD. We believe they may have served to an incorrect address.
“Even if we had been the responsible legal owner, their entire process would be defective. It is certainly a false statement to claim that we have ‘acknowledged receipt’ of any such notice.”
“Witch hunt” claims
Mr Wilson went on to say,
“There is no doubt this is a witch hunt. It is far easier for the Council, in collaboration with the Police, to pursue what they see as an easy target.
“The public record shows the details of the true owners, which have been provided to the Council; but pursuing so many individual owners is clearly too much effort for them.
“For the avoidance of doubt, PCPD have never owned the site nor had responsibility for its maintenance.”
New freeholders
Mr Wilson also informed News OnTheWight through his statement that PCPD hope the “new owners will fair better than we have”, adding that they’ve made “a significant loss on this site”.
A spokesperson for PCPD told News OnTheWight that,
“PCPD sold the site on 31st May 2022 to a property investment company called WTL, who we know were selling the site on immediately to an overseas developer.
“We only know that there intention was to try and come to an arrangement to terminate the 50 leases, so that the site could be made safe and then redeveloped.”
Other leaseholders
As well as the 50 leaseholders, PCPD say there are also two other leases.
“One is to a private individual who we understand was part of the Carlauren Group, and the second appears to be a management company responsible for the site. They expire in 2025 and 2026 respectively. “
Ownership of other properties
Mr Wilson finished by saying,
“We were pleased to be able to agree a sale of the adjoining public house to a local and experienced hospitality operator, who has exciting plans to regenerate that asset and return it to use.
“We note that the Isle of Wight council and Hampshire Police made no attempts to intervene in the rapid decline of the site under Sean Murray and Carlauren Group’s long period of ownership, even after it was well known what has going on.”
PCPD bought the reversionary freehold to one other property on the Isle of Wight, which has been disposed of in the same way. They say they have no remaining interests on the Island, and do not seek to have any in the future.
Article edit
3pm 14th Sep 2022 – Number of leases added, additional comment from PCPD about Hampshire Constabulary, details of new freeholders added, details about other two leases added
6.18pm 14th Sep 2022 – Response from IWC added
Image: © Colin Midmore
