'Bombshell': Developer behind St Austell town centre's regeneration goes into administration
David McLean Developments (DMD) is leading the development of White River Place in the town centre and is the main funder of the £75million scheme.
However, it was announced today that the company has gone into administration with the firm's main holdings and subsidiaries all filing for administration.
The South West Regional Development Agency (RDA) is investing £31.5m in White River Place, but the rest of the funding for the scheme was coming from DMD.
However, the impact on the St Austell scheme was unclear this evening as the investment is coming from a separate limited company, White River Developments.
The scheme is already under way in the town and is set to provide new shops, restaurants, a car park, homes and public spaces. It is due to be completed at the end of 2009. DMD handed over keys to the new cinema building on the site to operators WTW Cinemas just two weeks ago.
St Austell MP Matthew Taylor said he would take the issue up with the Government should the development be affected by DMD going into administration.
He said: "Any uncertainty over the future of the St Austell redevelopment is a bombshell for the town. At this moment it is not clear whether or how the town centre will be affected since the redevelopment has been financed through a separate limited company. I have already spoken to Restormel and the Regional Development Agency.
"I have previously stepped in to clear the way for the redevelopment with Tesco, and more recently to secure the full government funding necessary. The credit crunch creates a very different situation, however, but with the project now half built there is no going back. Hopefully the bad news from DMD will not disrupt this project but if it does I will be working flat-out with the RDA and government ministers to find the solution."
A spokesperson for Restormel Borough Council said: "We are advised that the White River Place Development was a separate company and we are in close consultation with the SWRDA about the implications of today's announcement.
"We had a positive meeting on Friday with representatives of McLean's and the SWRDA about progress with the scheme and we understand all the finance is in place.
"Once we have fully assessed the situation a fuller media statement will be released later this week."
Theo Leijser, the South West RDA's area director for Cornwall and the Isles of Scilly, said: "The St Austell town centre regeneration scheme is being developed by White River Developments Ltd, a wholly-owned subsidiary of David McLean Developments Ltd, with funding from the RDA.
"David McLean Developments Ltd today went into administration – however, White River Developments is still trading so there does not appear to be any immediate risk to the town centre scheme, although we are continuing to monitor the situation very closely.
"We have committed £31.66 million to the £75 million scheme and have already spent £26.5 million. The project is hugely important to St Austell and the surrounding area and we will be doing everything we can to keep it on track."
