Croydon skyscapers under threat (From Croydon Guardian)

Croydon skyscapers under threat

7:04pm Tuesday 18th November 2008

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The ambitious plans to fill Croydon’s skyline with spectacular skyscrapers is under threat as the credit crunch bites.

Minerva, the company behind the £500m Park Place project, has admitted it needs someone to bail it out otherwise the development will not happen.

The 900,000 sq ft development was said to have interest from John Lewis to establish a department store in the complex.

Minerva’s share price began to plummet as it emerged it was struggling to finance the proposals.

But it shot up again as it revealed at its annual general meeting last week that it was in dialogue with proposed partners for the scheme.

A spokesman said: “Now that the uncertainty around our ownership following the ending of discussions with Limitless LLC has been resolved, we are advancing discussions with potential investors regarding a joint venture for the Park Place development in Croydon.

“Once a partner has been chosen, we will apply for revised planning which we believe will satisfy the prospective anchor tenant.

“Although the economic background remains challenging and uncertain, we have in place the projects, finance and the management team to take us through this difficult period.

The outlook was better for Menta who submitted planning application for their Cherry Orchard Road development on Thursday night.

The £500m residential and commercial complex is designed by renowned architect Ken Shuttleworth and chief executive Craig Marks is confident his project will survive the recession, but conceded there may be delays.

He said: “We have invested millions in the site and we are not panicking. We will be on site next year for demolition and our analysts say the building should be just in the right period – between 2011 and 2015.”

David Hudson, chief executive of Guildhouse-Rosepride who are behind the £350m Odalisk development in the town centre, admitted his scheme could be delayed.

He said: "I can't be absolutely confident about the economy but we think 2011 could be quite a good time to be starting construction.”

Work on Stanhope-Schorder's has been delayed by the economic downturn, and there are question marks over John Laing’s financial ability after the bank that is facilitating the loan for the Urban Regeneration Vehicle, RBS, announced job losses due to continuing tough times.

• For an essential online guide to saving money during the credit crunch visit yourlocalguardian.co.uk/money

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