Sheffield firm Velocity Village calls in administrators

Image caption, Administrators said the economic downturn had impacted the property sector

The company behind a new apartment and office block in Sheffield has gone into administration.

Property developer Velocity Estates, which is based in the city, has called in administrators to Velocity Village, one of its subsidiary companies.

The Velocity Village complex, off Tenter Street, has 445 apartments and 106,000 sq ft (9,848 sq m) of commercial space.

The administrators said current tenants and leaseholders would not be affected.

Up for sale

Velocity Estates co-owns Velocity Village with four other companies.

Administrators Deloitte said the economic downturn had impacted on the property sector "quite significantly".

Daniel Butters, a partner in Deloitte's reorganisation services team, said: "A combination of this economic environment and the companies' inability to meet financial obligations has meant that Velocity Village has had to enter administration.

"The Village is close to completion and the joint administrators will be overseeing the completion of the development whilst marketing the complex for sale.

"There will be no impact on the current tenants of the Village nor existing leaseholders and the Village will continue to run as normal."

Deloitte said Velocity Tower Ltd, which built Sheffield's 22-storey Velocity Tower, is part of the Velocity brand but was a separate company and had not been placed in administration.

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