The remaining team behind one of Birmingham’s highest profile developments have said it is business as usual after a development partner went bust.
A spokesperson for Masshouse Developments Ltd said the multi-phase scheme at the gateway to Eastside would continue as planned despite David Mclean Group calling in administrators.
The group was a minority shareholder and main contractor on the scheme that has delivered One Masshouse Plaza, an 173-apartment block, and is developing a 14-storey block with 168 apartments. Future phases include the £81 million magistrates’ court and a separate commercial development although this will now only proceed “as soon as market conditions allow.”
Nick Payne, chairman of Masshouse Developments Ltd which consists of Nikal and Royal Bank of Scotland, said: “Our thoughts are with our friends and colleagues at David McLean Group during this difficult time. The project will continue and we will build on the momentum achieved.
“We will complete the Two Masshouse Plaza residential building under construction, work with the team planning Birmingham’s £81million magistrates’ court and plan to deliver the commercial phase of development when market conditions allow.”
The contractor arm of the £130m-turnover group will close while administrator Deloitte looks for a buyer for its housebuilding arm. The company has a turnover of £160m and 320 employees. The group’s head office is in Deeside, north Wales, with regional operations in Shrewsbury and Cardiff.
Nick Edwards, joint administrator, said: “Whilst the property downturn has impacted cash flow, the land and property assets are high quality, and with the excellent reputation of the group, should make the house building division an attractive prospect for purchasers. We are continuing to trade this part of the business whilst we seek a buyer.
“The contracting division has struggled to generate a critical mass of profitable contracts.”