Who are CPM?

< — edited @ 17 May 2008 — >

An update on CPM’s position since Administrators were called in to Erinaceous last month [cite: buckshaw village community forum (of which CPM are an active member)]

CPM wrote:

Update on the current CPM position:

As some of you are aware, Erinaceous Group plc went into administration last week. We in RMG have been sold to a new company, Caley Ltd, owned by the three leading UK Banks – HBOS, HSBC and LloydsTSB. We are therefore fully ring fenced from ERG and continuing to operate as normal outside of any insolvency process. Along with the former Erinaceous Insurance and repairs divisions, RMG is now part of a strong group of profitable businesses with the backing of 3 major banks.

Caley Limited

Acquisition of businesses from Erinaceous Group plc

Caley Limited, a business investment company jointly established by leading banks HBOS, HSBC, and Lloyds TSB, is pleased to announce that it has acquired three businesses from Erinaceous Group plc. Erinaceous Insurance Services Limited (EIS), together with Residential Management (Residential Management Group Limited and its subsidiaries) and 3C Asset Management (formerly Erinaceous Property Maintenance).

Caley has been created to provide the acquired businesses with long-term stability and a strong financial platform.

< — end edit — >

From their website CPM tell us that …

“CPM - a subsidiary of Erinaceous Group Plc – is one of the UK’s fastest growing specialist residential property management companies and has been established for twenty years. CPM works with property developers and residential property management companies throughout the UK.”

And that …

CPM Asset Management Limited services include property management, insurance, company secretarial services, surveying, cleaning and grounds maintenance, caretaking and maintenance of public open spaces.

Not that this tells us a great deal!

CPM Asset Management are essentially what is referred to in the property trade as a ‘Managing Agent’. Most commonly, the role of a residential managing agent is to take care of the running of a Residents Property Management limited company (SIC code 9800)* and the estate or development to which the company is related, on behalf of the Members (leaseholders) and, should there be any, Directors of the company. For more information on the difference between ‘managing agents’ and ‘management companies’ please refer to the ‘what you NEED to know‘ page.
* UK Standard Industrial Classification (SIC) – click here for SIC table.

It is clear from our own dealings with CPM that their interpretation of this role is – Do as little as possible, charge as much as possible, for as long as possible, without any regard to the welfare of the clients or the up keep of the estate.

The longer they can delay the appointment of resident Directors to the Management Company the longer they can drag out their charges. By the admission of one of their own Property Managers CPM looses over 50% of their business the same day that resident directors are appointed. i.e. Leaseholders waste no time in sacking them!

At the time of writing, according to FAME Database of company records CPM Asset Management are currently listed as the Directors of a some 410 Residents Property Management (9800) Companies. Of these 410 less than 15% have Directors other than CPM, or their sister companies, appointed. This means that 85% are under the sole control of CPM/Erinaceous. The author knows from experience that this is a very negative position for the residents of those developments to be in. They have little/no control over their company, their investment, their home!