Cube sale ‘more than a year away’
ADMINISTRATORS in charge of completing the development of the Cube say the iconic building is unlikely to be actively marketed to potential purchasers for at least a year.
PwC’s Matthew Hammond also told TheBusinessDesk.com the project came close to being knocked off track and his team had to work through the Easter holiday to persuade specialist contractors to return to the site.
Mr Hammond, a Birmingham-based specialist restructuring and recovery partner, said: “I got involved on the Friday before Easter when we were appointed as administrators. It always looked like a very difficult ask to keep momentum in the project.
“It was entering the most complex phase of the build process. This is a complex design, a complex build, with complex engineering and it was vital to keep our specialist contractors on board.
“Going into administration caused an immediate lock-down of the site to allow us to secure valuable plant and material. This lost us more than a day on a project where hours matter.”
The pace of the project was remarkable, said Mr Hammond: “The Cube is being built at rates not otherwise seen on similar projects. The rate of handover of units to tenants is scheduled at double the pace of the industry average. This is a 24/7 site.”
“We have to try to complete the build to the original specification,” he said. “Some of these contractors are providing edge-of-the-envelope capability. Someone like Haga, who are providing the roofing, are essential.”
“But the fact that they and other major contractors are back on board sends a message to the rest of the construction industry that the Cube is going to plan, is on budget and on schedule.”
But Mr Hammond would not be drawn on the circumstances that led to Birmingham Development Company and its construction arm BuildAbility Ltd being placed into administration by Lloyds, and also refused to comment on how the administrators were handling negotiations with confirmed and prospective tenants.
He said: “As administrators, it is our job to complete the build, get it populated and then optimise the exit for creditors.
“Way down the track – 12 to 18 months away – we will look to market it to investment buyers and get the best possible result for creditors.”
A “significant proportion” of the development’s 200 residential apartments had already been sold, he said.
