A construction company which stopped work on a 528-room student block in Penryn after going into administration has been sold by the administrators.
Caledonian Modular stopped work on the £40m, "purple" student block known as "Studytel, Penryn" at the beginning of March with work grinding to a halt.
When the Packet went down to take a look at the site on March 21 it was empty except for a security guard who said the company had had some "office difficulties" but he expected workers to return next week.
Today (April 4) the administrators of Caledonian Modular ("the Company"), Mike Denny and Mark Firmin from professional services firm Alvarez & Marsal, have announced that the company has been sold to the JRL Group, an integrated construction business with sites across the UK, following an independent sale process.
The sale has secured the future of Caledonian Modular, which is the UK's largest modular construction company, and saved over 200 jobs at its Newark site, however it is not clear whether JRL will start work again at the Penryn site. JRL have been contacted to find out what the situation is.
Mike Denny, managing director, Alvarez & Marsal, said: "The twin challenges of the pandemic and rising inflation have placed strain on balance sheets for businesses across the UK, including those in the construction sector. We are delighted to have secured a sale of the business to JRL Group, rescuing the UK's largest modular construction specialist. We wish the business and its new owners every success for the future."
The huge building is a project by a company called StudyTel based in the Isle of Man who contracted Caledonian Modular to build the £40m turnkey contract for a 528 student bedroom development.
The building does not currently have an outer shell leaving the purple inner wall exposed to the elements.
The site was due to open to students for the 2021/22 academic year.
Permission was granted for the 528 bed student accommodation block in Kernick Industrial Estate by Cornwall Council's planning department in 2018.
The development on Parkengue Road is being redeveloped to include a mix of self-contained studios and cluster apartments with shared kitchens and communal spaces.
Along with the accommodation facilities, the scheme is supposed to feature a 'Winter Garden Library' with shared working space for both students and business start-ups.
Source: The Packet
