Mon, 07 Oct 2013 | ADMINISTRATION
Site developer Denizen has been placed into administration, with work at the Ageas Bowl cricket ground in Hampshire halted.
The developer and main contractor on the project to build a 175-room Hilton hotel at the site, failed after a string of errors were discovered in the pricing of several contracts.
Managing director, Steven McGee, referenced the insurmountable problems in moving forward or completing jobs in an email that was seen by the BBC. He said the issues were due to discrepancies with budgeting on the projects, with supply chain cost increases only making matters worse.
Denizen said: “The move follows stringent efforts… to fix the business after ‘serious flaws’ were unearthed in the pricing of a number of the contracts.
"The current outcome… was never envisaged and it was the new board’s expectation that they would be able to complete the three contracts on its books.”
The project, which started in 2012 and was backed by £58.5 million in funding from Eastleigh council, is 75 per cent completed. The council is working to find a new contractor quickly to finish the job.
The club is confident that the situation will cause only a short delay the opening of the hotel, and that major events due to be held at the site in 2014 will not be affected at all.
Council leader Keith House said: “The council has no exposure as we will purchase the completed hotel.”
“Clearly I’m concerned about the employees at the site and those around the country but it doesn’t directly affect the council.”
____________________________________________________________________________
Related information:
Hallam Tower for sale
Blackpool school building up for sale
This is a unique opportunity to acquire two well-established B2B companies operating across multiple sectors throughout the UK, boasting strong client relationships and secure contracted revenues poised for further expansion.
LEASEHOLD
This is a unique opportunity to acquire a prominent company in a specialist sector with a high barrier to entry, offering integration potential and a cash-generative model with repeat revenue.
This business presents an enticing opportunity with established relationships with blue-chip organisations globally, a strong client retention rate, and the potential for relocation.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.