Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Liverpool hotel still on track

A £100 million hotel and residential scheme in Liverpool is to go ahead despite its developer going into administration.

Local firm Vermont Developments went under last week after it failed to keep up payments on a £4 million loan.

The firm was due to begin work on the £100 million scheme in the city called Sefton Street for Ethel Austin Properties.

Now Construction News understands that the construction team will continue with the scheme, with Vermont managing director Mark Connor -overseeing the work.

A source close to the scheme said: “He is apparently being kept on to manage the job. Because Vermont Developments was going to build it, he will use the same construction team as originally planned - it just won’t operate under the Vermont name.”

Operator Ramada is expected to take over running the hotel and apartments once completed.

London-based lender Downing Corporate Finance called in administrators from Wilkins Kennedy last Friday. The firm had lent Vermont £4 million to help it part-fund a £40 million apartments complex at Salford in Greater Manchester called Foundry Wharf.

But the 221 apartment complex was mothballed last month because Vermont - which in its last set of available results filed at Companies House saw pre-tax profits in 2006 shrink 70 per cent to £449,000 from the year before - could not find enough buyers for the flats.

At the time, Mr Connor said the delay was only “a short-term hold” and added the timescales for the project were being reconsidered “until such time as there is more certainty in the residential and mortgage markets”.

News of Vermont’s demise comes just two weeks after cost consultant Davis Langdon said that contractors working in major cities in the north should prepare for a slowdown.

Report author Peter Fordham said: “While there is a lot of work going on in Liverpool, a lot will be finishing soon.”