Crisis at flagship Jewellery Quarter site as developers crash
Jun 10 2009 by Graeme Brown, Birmingham Post
Hopes of work re-starting on a flagship Jewellery Quarter development have been crushed after the developer plunged into administration midway through the project.
Property firm Junared, which had begun work on transforming the historic Birmingham Mint building into 186 luxury flats, called in administrator Deloitte after struggling against credit and pre-sales agreements falling through.
The landmark project had been halted six weeks before Christmas, with dozens of contractors owed money, when banks pulled funding. Now, administrators are tasked with finding a buyer for the half-completed mixed-use scheme, which had promised to deliver luxury one, two and three-bedroom apartments and 51,000 sq ft of commercial space.
Community leaders in the Jewellery Quarter say the old Birmingham Mint building, known for its 130ft tall chimney stacks, now looks “terrible” and is in dire need of new investment.
Joint administrator Matt Cowlishaw said: “In the economic environment, the Junared companies faced lower sales interest as well as pre-sales agreements falling though, which resulted in the companies being unable to complete the developments. We are reviewing the developments and the options for their completion. Any parties interested in acquiring the developments in their existing state or entering into a joint venture for their completion should contact the administrators.”
Junared had previously stated on its website that all of the apartments on the Birmingham Mint development had been sold but a spokesperson for Deloitte said “a significant proportion of these pre-sales agreements fell through”.
She said directors of the company were forced to stop work on the development because of falling interest. The groundworks had been completed on the development and administrators are assessing the cost of completing work.
The scheme, on Icknield Street, Hockley, was designed to create a modern living space while preserving Grade I and II-listed features including the chimney which sits above a furnace to smelt metals for coins.
Marie Haddleton, president of the Jewellery Quarter Association, which represents businesses and residents, said the Birmingham Mint building, which dates back to 1794, was a crucial part of plans to develop the area. She added: “This is tragic. I know this is happening all over the country but the Jewellery Quarter has had many developments stopped. I just hope that this will be picked up again because it is half-and-half at the moment and it looks absolutely terrible.I am worried that it puts its listed building status under threat if nothing is done.”
Deloitte has been appointed as the administrator to Junared One, Junared Two, Junared Three, Burridge Land and Warnock Estates. The High Wycombe-based company was also working on two other developments, both in London, one of which had already been sold and the other which remains part complete.
