Workers quit £900m Multiplex job at One Nine Elms
Exclusive: Contractors have started to leave the £900million One Nine Elms site in London as Multiplex sues the developer for payment.
Construction workers began leaving the site today after being told work was on hold. Workers were seen leaving throughout Monday morning, with some telling Building News their work on the site was complete for the time being.
A worker leaving the site said: “The builders will all be gone by Friday. We are leaving now. It could take up to three months, they said, but who knows.”
A security guard said he expected more information about the plans to be released later today in the form of a letter to contractors, but said he expected May the site close soon. He added that it was unclear when work would resume.
NC understands that all sub-contractors will be off site by Friday and that work is halting after China-based developer R&F Properties UK failed to pay main contractor, Multiplex.
R&F acquired the site in January 2018 from Chinese company Wanda after encountering financial difficulties. But earlier this month the R&F subsidiary in Hong Kong was put into ‘selective default’ after agreeing with its lenders to delay repayment of a $725m (£539m) debt, according to Reuters. At the time, the parent company’s credit rating was not changed, but rating agency S&P Global said it could still be downgraded.
An R&F spokesperson said: “Work continues at One Nine Elms as we discuss a range of issues with Multiplex to ensure development success.”
Multiplex was appointed prime contractor for the 1.14m² mixed-use residential project in January 2017 by original developer Wanda after attempts to appoint a joint venture led by Interserve and Balfour Beatty failed.
The One Nine Elms project near Vauxhall consists of two 56-storey and 42-storey towers, next to a 173-room luxury hotel. In total, it is expected to include 730,000 square feet of residential apartments, 267,000 square feet of hotel accommodations and 1,000 square feet of retail outlets.
Multiplex has been contacted for comment.