Commercial Finance Specialists

A commercial development firm has gone into administration, stopping the planned construction of a new 44-storey tower, it has been announced.

The planned commercial development of a 44-storey Manchester tower block has been placed in jeopardy, it has been revealed.

Albany Crown, the property investment firm behind the £80 million project, has been put into administration after the firm's bank could not find a "consensual solution" to its financial problems.

Explaining the decision, a spokesman for Barclays said: "The challenging economic climate and the company's deteriorating cash flow have led to significant delays in the progress of the development.

"As a result, the bank is now faced with a significant loss which it will be unable to recover, underlining the need for swift action in this case."

Bill Dawson, a partner at Deloitte and the appointed the administrator, told the Manchester Evening News that the site still represented an attractive proposition.

Also in Manchester, it has been reported that property investment firm Development Securities has agreed to purchase the MEN Arena for more than £60 million, reflecting a yield of around 7.5 per cent.

Posted by Tess Nelson.