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Construction company has gone into administration

By Croydon Advertiser  |  Posted: June 03, 2011

Towering standstill: Work on the IYLO tower has been brought to a halt CRGM20110525B-011_C

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CONSTRUCTION work on what is set to be one of Croydon's tallest buildings has stalled.

For the second time in the space of a year, work has ground to a halt on the 20-storey IYLO residential tower in Wellesley Road.

St James's Croydon, a subsidiary of developers Phoenix Logistics, has gone into administration – bringing building work on the town centre site to a grinding stop.

A spokesman for Phoenix said last week: "I cannot comment further other than to confirm that St James's Croydon is in administration.

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"We now have nothing to do with the building and the administrators are now looking to sell the development."

A total of 182, mainly one and two bedroom, apartments were being built in the tower.

Work had stopped last following problems with Phoenix's original contractors, Lancsville, which were fired for poor performance.

Lancsville later went into administration.

Phoenix was also forced to enter a new financial agreement after HBOS – which was financing the scheme – was taken over by Lloyds.

Work restarted in August last year after Phoenix formed St James's Croydon as a separate construction company.

Croydon Council leader Mike Fisher told the council his authority was looking to see what could be done to resolve the issues.

He said: "We are obviously disappointed that there are difficulties with this development.

"The council is doing what it can to assist the administrators to make the scheme viable."

Mr Fisher added: "Many of the flats have been sold and people have money tied up in the scheme so we want to see the development go ahead."

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