Blackfriars tower site falls into administration

The Royal Bank of Scotland (RBS) has placed a 52-storey skyscraper project on Blackfriars Road into administration.

The major mixed-use scheme, called 'One Blackfriars Road,' was tipped to be worth as much as £1 billion on completion. It had secured planning permission for 64 luxury apartments as well as a 261-bedroom Jumeirah hotel.

The £500 million commercial project was backed by The Beetham Organisation, a Liverpool-based developer and Mirax, the property company founded by Russian property tycoon Sergei Polonsky.

RBS has now appointed administrators to the project 'following the breakdown of the relationship between RBS and Beetham’s Russian partners,' says The Beetham Organisation.

Beetham added that it hoped to be able to lever the project out of administration with the help of new investors, but did acknowledge that the site could be sold. The company said that they would be expecting bids of around £150 million from potential buyers if the site was to come onto the market.

BDO Stoy Hayward has been appointed administrator. Knight Frank has been instructed to act on behalf of Beetham and Mirax, while CB Richard Ellis is acting for RBS, who supplied the original loan, although it has since been shared with other banks.

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