Duncarse Developments in administration, £40m Riverside project delayed

Construction of a £40m luxury apartment block in Dundee has been delayed after its developer went into administration.

Duncarse Developments claimed earlier this month that it would begin work on the 202 Riverside apartments, despite rumours it was in financial trouble.

In recent weeks it had shut a city office and made seven staff redundant.

Over the weekend it announced it had appointed PricewaterhouseCoopers as administrators after failing to secure additional finance.

Insiders said the Riverside project was now on hold but that the administrators hoped to find a third party to eventually take the scheme forward.

Around 25 people have paid deposits to reserve an apartment in the development but it is unclear at this stage as to what will happen to their money.

Joint administrator Bruce Cartwright said the company had been experiencing liquidity issues and was hoping that a third party would have come up with funds to support it.

“This did not happen and, as a result, the directors resolved that the business be placed in administration,” he said.

“Our immediate priority now is to review all options for the company which will include a sale of the current planned developments to a third party who is better placed to progress the work.

“We are conscious that a number of individuals may have placed deposits against the purchase of a unit and we will be communicating directly to them as to their position.”