Dickens Heath developer falls into administration

THE developer behind the award-winning Dickens Heath Village Centre project in Solihull has gone into administration.

Parkridge Holdings and Parkridge Gate Developments have both been placed under the control of Matthew Hammond and Rob Hunt, from the Birmingham office of PwC.

The Parkridge group comprises a large number of companies focusing on property development with interests in the UK and overseas, including Poland, Portugal and France.

Parkridge Holdings is predominantly a holding company and Parkridge Gate Developments is a service company providing administration services to the group.

PwC has not been appointed administrator over any other companies in the group, some of which are in liquidation and others continue under the control of the directors.

Dickens Heath is a mixed-use complex in a rural part of Solihull comprising residential accommodation, retail, a market square and community facilites.

The companies were founded by property entrepreneur John Cutts but Parkridge Holdings was sold to American industrial property giant ProLogis in 2005 in a deal worth around £300m in cash and shares at the time.

Mr Cutts is believed to own a significant shareholding in Parkridge still.

The firms’ UK offices are based in Solihull and London, where a total of 26 are employed, with other operations in Luxembourg, Poland, Russia and Ukraine.

Mr Hammond said: “Over the last two years the group had reduced its cost base and sought to sell assets to repay debt.

“This strategy, with the aim of trying to secure new equity and a refinancing, was supported by shareholders.

“However, cash flow pressure intensified earlier this year and long-running discussions around a refinancing broke down earlier this week.

“Following our appointment, we are reviewing the financial position and working closely with employees, lenders and subsidiaries during this difficult time.”