Henley’s former office. Credit: 2023 Google Streetview
Southern Housing has appointed Formation Design & Build to finish a housing scheme in Croydon that was left in limbo after the collapse of its previous contractor.
Henley Construct was building the 116-home scheme on Cherry Orchard Road when it entered administration in April 2023, owing millions of pounds to suppliers and halting construction across several construction sites.
Now Southern Housing has confirmed to Construction News that work has finally restarted on the project, which was originally expected to cost £35.2m.
Planning documents state that the Cherry Orchard Road project comprises the construction of a nine-storey building to contain a mix of studio, one-bedroom and multi-bedroom flats.
Private and communal amenity spaces, refuse and recycling storage, cycle storage, car parking, and a sustainable drainage system are also included in the job, along with hard and soft landscaping.
Associated works include sewer systems, landscaping, cable laying, infrastructure, enabling works and access roads.
CN understands that Formation Design & Build is set to complete the scheme for an undisclosed sum.
The West London-based contractor specialises in residential jobs in the London area, including the £100m redevelopment of the Ashley Road refuse depot in Tottenham Hale and the £97m demolition and replacement of an office block at 34 Wembley Hill Road.
Southern Housing, which merged with Optivo in December 2022, submitted a claim to Henley administrator 360 Insolvency for £36m in losses and damages.
Henley was also delivering two other projects in South London for Southern Housing: a £27.2m scheme for 75 homes in Thornton Heath and a 45-home scheme in Tulse Hill.
The contractor owed £6.7m to 221 suppliers, trade creditors and subcontractors at the time of its collapse, but 360 Insolvency said in a progress report this April that none of these firms were likely to see any money recovered.
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Will Ing