Brookfield Multiplex is taking on an expanded role on the development of the £1 billion Pinnacle tower in the City of London in a bid to kick-start the paused project, Construction News understands.
Though the main contractor’s role on the scheme – initially worth £539 million – is to be broadened “over and above” that of principal contractor, Construction News understands Brookfield is not at this stage acting as project manager on the site.
A spokesperson for the contractor said: “Brookfield Multiplex is working with the client on a development appraisal to move the scheme forward.”
The developer, Arab Investments, has been undertaking a review of the scheme with Brookfield, looking at how to adjust building plans to reduce costs, as Construction News reported in January.
Dubbed ‘The Stump’, the scheme has been on hold for more than a year due to funding issues, with workers downing tools in January 2012 due to concerns over financing.
The developer was in January seeking a £500m funding extension and a “significant” pre-let for the building.
Late in 2012, Brookfield began proceedings in the Technology and Construction Court to reclaim £14.9m in unpaid fees from owners The Pinnacle No 1 Ltd and £15.6m from parent companies The Pinnacle holdings Ltd and The Pinnacle Ltd.
The owners were ordered to pay Brookfield, having filed no defence against Brookfield’s claim.
The 63-storey project is also expected to face a redesign in a bid to reduce costs.
Completion was originally scheduled for 2014.
The scheme is being developed by Arab Investments on behalf of majority Middle Eastern owners the Saudi Economic and Development Holding Company.
It has been specifically designed for an investment bank tenant, complete with a trading floor.
A spokesman for Arab Investments declined to comment.