Irish banking crisis threatens £58m landmark project in City Road
Funding for 350 homes at Eagle House in doubt
Published: 26th November, 2010
by TERRY MESSENGER
THE Irish banking crisis has hit a landmark scheme to build nearly 350 homes in a skyscraper at the Old Street roundabout.
Work on 27-storey Eagle House in City Road has slowed down as question marks arose over funding for the scheme from Irish banks.
The skeletal block towering over Finsbury has been mostly empty of workers for the past two weeks – compared to a reported 350 builders who are meant to be on site.
Clerkenwell-based developer McCabe Builders are responsible for the £58m project along with the Family Mosaic housing association.
It is designed to provide 276 up-market private homes and 70 affordable homes through Family Mosaic.
A director of McCabe, based in St John’s Square, refused to comment on reports in the building trade press that sub-contractors had walked out, claiming they hadn’t been paid.
But Family Mosaic director of development Dick Mortimer revealed that McCabe has been hit by problems with backers from the Irish banking industry, leaving the majority of the block unfinished.
Mr Mortimer said: “They are still discussing issues with their bank and as far as I’m aware, the bank may or may not resolve this.”
The affairs of stricken Irish banks have been placed in the hands of the Irish Government’s National Asset Management Agency (NAMA).
Mr Mortimer said: “NAMA are making decisions on an individual scheme basis in conjunction with the original bank which funded this.”
Mr Mortimer needs NAMA to sign off on a funding deal to finish off the affordable homes part of the project, which are almost complete.
He added: “We’re willing to work with anybody to get this scheme finished.”
Meanwhile, McCabe is refusing to comment on fears for the future of the private up-market homes, which make up a majority of units on the site and are far from complete.
A source close to the project said that it’s now unlikely to be finished by its scheduled completion date in the summer.
The Irish banks lost billions in property investments which turned bad when Ireland’s housing market crashed.