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Credit crisis halts city’s landmark tower plan
 
 

Plans to site Scotland's tallest building in Glasgow city centre appear to have been scrapped as a result of the global economic situation.

The team behind Elphinstone Place, on the site of the former Strathclyde Region Council offices in Charing Cross, have reportedly confirmed the £120m, 40-storey mixed-use tower will not go ahead as planned, and that a fall-back project is not in place.

They have also said that the credit squeeze is behind the shelving of the scheme.

It comes just weeks after the company behind the tower said construction would be delayed a year because of planning issues, as reported by the Evening Times.

The abandonment of the project is bound to fuel concerns over the billions of pounds of development in waiting across Scotland, with sources claiming public reports on the credit crunch are four to five stages behind the reality.

Sources within the development industry also claim a number of high-profile schemes are in jeopardy as the banks scale down their lending and increase interest rates while funders are reported to be pulling out.

Concerns were also raised over the weekend that the credit crunch could prevent the Scot- tish Government achieving its goal of increasing the rate of house building to 35,000 new homes per year by the middle of next decade.

The Elphinstone Place scheme, a joint venture between Glasgow developer Elphinstone and the now bankrupt Harrogate-based City Lofts, had been scheduled for construction to begin later this year.

The landmark tower, which was to have a unique teardrop design, was intended to house over 200 luxury apartments, 171,000sq ft in office space, retail outlets, swimming pool, 230 car parking spaces and, given its prominent position, would have been a beacon of a resurgent Glasgow for travellers coming in from the airport on the M8. At 134metres high it would have outstretched the 125-metre Glasgow Science Centre Tower.

Ken Ross, chairman and chief executive of Elphinstone, said: "The project in unlikely to happen in its original form."

Gavin Angel, director of City Lofts St Vincent added: "It is difficult to proceed with a project of the type envisaged in the current economic environment."

Reports yesterday claimed City Lofts is in talk with its funders, New York-based Lehman Brothers, to find an alternative solution for the 1.4-acre site on St Vincent Street at India Street.

However, it was claimed that Lehman Brothers is now reluctant to advance as much funding as originally planned.

Publication date 14/07/08

Posted by: newman, glasgow on 11:07am Mon 14 Jul 08
So much for Gordon 'I've put an end to boom and bust' Brown and his economic miricle spun by Nu Liebour
Posted by: Sydney Meriwether, Glasgow on 11:17am Mon 14 Jul 08
The real failure of this building happened long before the 'credit crunch' set in!

This is yet more evidence that the long-term (lack of) vision our decrepit New Labour council has for Glasgow is simply falling apart: buildings not being built, tourists not coming, retail sales falling further behind competitors, hotel occupancy down, businesses shunning the city, etc.

New Labour have run this city into the ground and the quicker they are kicked out, the quicker Glasgow can get down to the real business of building a strong, sustainable city economy which is not dependent on the bluff and bluster of a failing, mediocre New Labour politician who is too scared to stand in a local by-election in Glasgow East.

--
Sydney Meriwether
"One of Glasgow's more intelligent residents."
Posted by: jim, Glasgow on 11:35am Mon 14 Jul 08
its the same everywhere.Just a pity theres a great big hole in the ground there now!Maybe have anouther curry house to rival lorne park development!
Posted by: FMJ, Glasgow on 11:39am Mon 14 Jul 08
Anyone for flats?
Posted by: jim, Glasgow on 11:47am Mon 14 Jul 08
Manchester wont be building 6 new builds similar to this.Liverpools new developments are scaled in half and done on cheap ,edinburgh is sleepwalking into a nighmare with the development thats been passed through there ,its ugly and out of place and nobody wants them.
Posted by: Southsider71, Newton Mearns, Glasgow on 1:37pm Mon 14 Jul 08
Guess this was bound to happen, considering the number of developer delays, even when things were better than they are now. Saying that, there still seems to be a suprising amount of building work going on in the city centre, most notably that new highrise building that is getting put up near the kingston bridge. However i would disagree with Jim, the hole in the ground is better looking than the SRC builing that used to sit their crumbling...
Posted by: Southside, Giffnock on 1:49pm Mon 14 Jul 08
Are City Lofts not in administration? This was reported in news on 7 July 2008.

Posted by: Stewie Griffin, Glasgow on 2:53pm Mon 14 Jul 08
So much for Gordon 'I've put an end to boom and bust' Brown


I know, 10 years of boom and 2 months of bust. **** that man!!

Posted by: Pete, Glasgow on 3:08pm Mon 14 Jul 08
Stewie Griffin wrote:
So much for Gordon 'I've put an end to boom and bust' Brown
I know, 10 years of boom and 2 months of bust. **** that man!!
Good point. Apparently we're not in the 'nice decade' anymore, but who gave us the 'nice decade'...?

Not so much you can do about Fannie and Freddie going t!ts up.
Posted by: People Power, Glasgow, NOT Glas - vegas on 3:20pm Mon 14 Jul 08

Come on folks this fantasy is no great loss.

The whole notion was ridiculous.

This is Glasgow we're living in NOT Glas-vegas!

Give us some real stylish architecture, not a Glass eyesore of a tower, which wouldn't even be situated in the best site for it.....

Some projects when completed are disasters from the start, I mean look at the Clyde arc ("Squinty Bridge!") So, come on. I think in this case we've been spared.
Posted by: newman, glasgow on 4:29pm Mon 14 Jul 08
Stewie you missed the point-
Gordon Brown consistantly bragged that HE had put an END to boom and bust, note He said an END. So why promise something that no economist worth their salt would bet even 1p on, the man is incompetent. As for Gordon presiding over a 10 year economic boom, it just so happened that the world has been in an economic boom for 10 years and he never gave any credit to this for Britain doing well, however as soon as there is a threat or even actually a recession it is the rest of the worlds fault.
Posted by: Brad on 5:27pm Mon 14 Jul 08
"the world has been in an economic boom for 10 years".. well, aye and naw. The UK has had a more consistent growth record than other developed economies (most of which had had some recession when we haven't, e.g. 2001 dot com crash) but we avoided it partly by fuelling a credit boom that - as we now see - was unsustainable. It's not certain we will go into recession though: slow growth for a couple of years is still the most popular forecast.
Posted by: The Real Sydney Meriwether, Glasgow on 5:28pm Mon 14 Jul 08
Sydney Meriwether wrote:
The real failure of this building happened long before the 'credit crunch' set in! This is yet more evidence that the long-term (lack of) vision our decrepit New Labour council has for Glasgow is simply falling apart: buildings not being built, tourists not coming, retail sales falling further behind competitors, hotel occupancy down, businesses shunning the city, etc. New Labour have run this city into the ground and the quicker they are kicked out, the quicker Glasgow can get down to the real business of building a strong, sustainable city economy which is not dependent on the bluff and bluster of a failing, mediocre New Labour politician who is too scared to stand in a local by-election in Glasgow East. -- Sydney Meriwether "One of Glasgow's more intelligent residents."
"Glasgow is simply falling apart".

Complete and utter rubbish. This is typical negative rantings from a "psuedo-intelectual" SNP supporting hack. He does not have the backbone to stand the heat from the fire of the political process and enter into the election process to make a difference and address all the so called negativity he sees everywhere in Glasgow. I think he, himslef is guilty of that which he accuses others of being
"too scared to stand in a local by-election" not only in Glasgow east, but ANYWHERE!

GUFF & BLUSTER.

The Real Sydney Meriwether
"One of Glasgow's more intolerable rodents."


Posted by: People Power, Glasgow on 5:40pm Mon 14 Jul 08

Just the word BLAME, and the terms that follows the "BLAME GAME!" sickens me to the core. BLAMING is anything but GAMING!
It's real peoples lives, livelyhoods, and their finances which are at stake.

All very well for the wealthy politicians to gloat, lie, time waste, introduce pointless and needless legislation all so arrogantly.

What we need to see is accepting responsibility, and real solutions - not tokenistic gestures, headline grabbing announcements, and speeches.

This buildings failure to transpire in the bigger picture of things is an indication of the global economic situation.
But it is by far the best decision that could be made, as we must focus on the essential building of affordable housing, and maintainence of existing, and crumbling buildings.....

I mean 1/3 of Glasgows leisure centres affected by closures leaving kids without facilities for the school break.

See: http://www.eveningti
mes.co.uk/news/displ
ay.var.2379066.0.0.p
hp

Yet, I didn't see the E.T. running follow up stories here - Wonder why ? Somebody from GCC silence its reporters ?

Tighter times are ahead of us, the global recession is starting to bite. Those who want to spend now do so at their peril, as if the cost of fuel, and on the high street increases any more in the next 4 - 5 months Santa & his little helpers may be on a tighter budget.
Posted by: albertz78, city center on 6:12pm Mon 14 Jul 08
bluff and bluster of a failing, mediocre New Labour politician who is too scared to stand in a local by-election in Glasgow East. -
Come on Sydney,there are more brown envelopes to be had on the Council than in Westminster
Posted by: Meep, Shawlands on 7:28pm Mon 14 Jul 08
Just to be pragmatioc here, the idea that those flats would have been "luxury" when they are located right beside the M8 motorway is hilarious. The only view the yuppies wouls have got is the traffic jams every day. Looks likie this is the first of many schemes to be canclled over the next few months. And all these new plans for more sex tourist hotles will be out the window. Defenstration.
Posted by: daz, glasgow on 8:11pm Mon 14 Jul 08
Brad wrote:
"the world has been in an economic boom for 10 years".. well, aye and naw. The UK has had a more consistent growth record than other developed economies (most of which had had some recession when we haven't, e.g. 2001 dot com crash) but we avoided it partly by fuelling a credit boom that - as we now see - was unsustainable. It's not certain we will go into recession though: slow growth for a couple of years is still the most popular forecast.
no the recession isn't certain, but thankfully the westmonster government will have prepared for this rainy day and stocked up on commodities that hold their value...like gold.

oh wait a minute.....
Posted by: Brad, Glasgow on 11:07pm Mon 14 Jul 08
wait a minute indeed... Maybe HM Samuel will go into receivership and the Gvnt can nationalise them, like R Rock...
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