Cash flow problems lead property development company into administration

The company behind a planned 44-storey commercial property situated in the city centre of Manchester has entered administration.

Bill Dawson and Ian Brown of Deloitte were brought in to Albany Crown, which was working on the plans before the credit crunch hit Britain.

The site, formerly a labour exchange, was purchased by Albany for £6m in 2005. Planning consent was granted the same year.

The £80 million project was to dominate the skyline and house ten storeys of offices, 237 apartments and a hotel. The ground floor was to be used for a mixture of leisure and retail.

Deloitte explained the property developer's situation: "The company had a challenging cash-flow position which was adversely impacted by the difficult economic climate, resulting in today's administration."

Albany's cash flow problems proved to be dehabilitating, leading to delays on the project's progress. Its bank Barclays will not be able to recover its loans from the developer.

Mr Dawson said: "This is a prominent and attractive site in central Manchester and we are seeking interested parties in order to maximise returns to creditors."

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