Wanda One has retendered its £900m One Nine Elms project, with two heavyweight contractors now in the running to replace Interserve on the scheme.
Construction News understands that Balfour Beatty and Brookfield Multiplex have submitted individual bids, after being approached by the client to tender for the project.
The move follows months of negotiations between Wanda One and its original preferred contractor Interserve, which was selected as part of a joint venture with China State Construction Engineering Corporation 8 in April 2015.
In February, Interserve chief executive Adrian Ringrose told Construction News he was still hopeful of the deal going ahead, despite admitting it was “taking rather longer than perhaps anybody had thought”.
However, it is understood that Interserve is now off the scheme, with negotiations around price thought to be the sticking point.
Interserve and China State had originally been selected over Mace and another UK-Anglo JV between Atkins and China State Construction Engineering Corporation 2 to bag the luxury residential-led project, which has a construction value of £400m.
It is understood that Mace was approached three times by the client over recent weeks, who asked the contractor to rebid for the scheme but Mace declined to go back in for the deal.
The One Nine Elms project, which will also include a luxury hotel, has been clouded in uncertainty over recent months.
One senior-level source close to the project questioned whether the scheme would be complete by 2018 – the target delivery date set by the client.
“[It’s] a really tight programme and I would have thought that’s blown already, without the main contractor [changing]. It’s really going to be a struggle,” the source said.
He added: “And when they do deliver, who’s the market going to be? Who are they going to sell it to? They’ve pre-sold some [flats] but you may find that some of those people [buyers] have walked away from it because of what’s happening in that end of the market and in that location.”
One Nine Elms sits in the Nine Elms development area, which is home to a long list of luxury residential projects at various stages of development.
The amount of development has fuelled concerns of an oversupply in high-end homes in the area.
Another senior-level source told Construction News: “The more important question now is [whether the project will be built], in terms of [the client’s] confidence in the market because it’s a hotel and residential project, with the residential element obviously being the higher risk for them.”
Wanda One is a subsidiary of Chinese commercial property giant Dalian Wanda, which has assets valued at around £36bn and annual revenue of around £17bn.
Wanda One was unavailable for comment.
Balfour Beatty, Brookfield Multiplex and Interserve have been contacted for comment.