Bargate Quarter contractor enters administration - confirmed

The Bargate with the construction site at the Bargate Quarter in Southampton <i>(Image: Newsquest)</i>
The Bargate with the construction site at the Bargate Quarter in Southampton (Image: Newsquest)

THE developer behind the £132m Bargate Quarter has said it is "totally committed" to the project after its principal contract entered administration.

Henry Construction Projects Limited has filed for administration after a downturn in activity was noticed at the development that will have 519 homes.

There are fears the setback will "at the very least slow the development down".

But bosses at Tellon Capital have confirmed that they are "in the process of finding a new construction partner".

James Burchell, partner at Tellon Capital, said: “We remain totally committed to delivering the Bargate Quarter redevelopment.

"Once this scheme is delivered, it will provide an exciting new chapter for one of the most historic parts of Southampton.

“Regarding the administration of Henry Construction Projects Limited, we can confirm they are no longer appointed.

"We are already in the process of finding a new construction partner to join our project team, and discussions are underway.

“We would like to thank residents and stakeholders for their continued support and we’re looking forward to delivering a high-quality scheme that benefits the whole city.”

FRP Advisory has been appointed as joint administrator of Henry Construction Projects Limited.

A statement said: “Geoff Rowley and David Hudson of specialist business advisory firm FRP were appointed as joint administrators to Henry Construction Projects Limited.

“Following the appointment, the joint administrators are currently assessing the position with support from sector professional advisors.”

It comes after Henry Construction Projects was fined £234,000 by the Health and Safety Executive after a demolition worker suffered a serious injury after falling from a platform in London in March 2021.

The Bargate Quarter project will see homes and 2,515 square metres of ground floor commercial space.

Conservative MP for Southampton Itchen, Royston Smith, said: “I’m afraid some of us were worried about this. We are living through very challenging times.

"Many developers are working to a contract and as inflation and energy costs have spiked, due to Putin’s illegal war in Ukraine, some are finding the sums no longer add up.

"Tellon Capital remain committed to the site, so hopefully they will find a way to continue with the Bargate Quarter.

"It will, at the very least I expect, slow the development down but let's hope it can get back on track quickly.”

Bargate Quarter was expected to be completed by late 2024 or early 2025.