Croydon Council is set to vote on closing down its controversial developer Brick by Brick.
The council-owned developer had a series of sites in the pipeline but only the ones set to be completed by October 2021 will go ahead.
The council has loaned the company £200 million and it is one of the reasons the council is currently facing a financial crisis with a black hole in the budget meaning extensive cuts to services.
Brick by Brick was set up in 2016 with the aim of building 500 new homes a year. It has so far completed 319 homes across 15 sites and 42 council homes.
The developer currently has more than 500 homes under construction.
But now Croydon Council is looking to wind down the company meaning 27 projects which were in the pipeline to be developed will not go ahead. These include nine in New Addington and six in the Shrublands Estate.
The council will now be deciding whether it will sell off the sites or essentially leave them as they are.
The 27 developments that will not be pursued by Brick by Brick are:
Land at Freelands Avenue
Garages and a car park at Heather Way
Garages in Tedder Road
Garages at 9 Bramley Hill
Garages at 18 Bramley Hill
Garages in Thorpe Close
Two sets of garages in Redstart Close
Garages in Comport Green
Two sets of Garages in Calley Down Crescent
Land between King Henry’s Drive and Gascoigne Road
Land near Tudor Academy, King Henry’s Drive
Garages in Kennelwood Crescent
(Image: Brick by Brick)
Garages at Bracken Avenue
Garages in Erica Gardens
Garages in Border Gardens
Garages in Bramble Close
Garages in Fir Tree Gardens
Land at Laurel Crescent
Upper Norwood and South Norwood
Garages in Bedwardine Road
Garages in Arkell Grove
Land adjacent to Brickfields Meadow
Waddon and Central Croydon
Former social club in Tamworth Road
Infill development at Duppas Hill Terrace
It also means an ambitious plan, which was approved in April 2020, for more than 400 flats on land between Fairfield Halls and Croydon College will not be developed by Brick by Brick.
The aim of this scheme was to fund the refurbishment of the arts venue.
The council has still not handed over this site to the developer and will now try and sell it on to recoup some of the £59 million it loaned to the company for the project.
A review of Brick by Brick was carried out by PriceWaterhouseCooper (PwC) and is set to go to the council’s cabinet next Thursday (February 18).
Colm Lacey, chief executive Brick By Brick, said: “The cabinet report highlights that the council, as shareholder and funder of Brick By Brick, is no longer in a position to invest in development via Brick By Brick as originally envisaged in the 2020 Business Plan as the risk profile is now too great for its current financial circumstances.
“For this reason the report recommends that Brick By Brick continues to develop out the sites currently in contract to completion. At the same time the council will explore the sale of the company. A range of sites that were being investigated for development by BBB will now be reviewed by the council to determine future possible use. Brick By Brick will continue to assist the council to explore and enable these options.”
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