Caddick swoops to save jobs at £154m residential scheme after collapse of Carillion

Harrogate-based Moda and Apache Capital have hired Caddick Construction in one of the first major private contracts to be back on site following the collapse of construction giant Carillion.

Moda’s sister company Caddick Construction, which is based in Wetherby, will deliver the £154m Angel Gardens scheme in Manchester, directly hiring 20 former Carillion employees.

A spokesman said: “It is one of the country’s biggest residential schemes outside London and the move will save around 500 jobs on site, protecting around 30 sub-contractor companies previously working under Carillion before it entered liquidation on January 15.

“Moda and Apache Capital had contingency plans in place since last summer and the swift move announced today ensures there will be no material impact on the project’s cost or timeframe of delivery.”

Caddick Construction will act as construction manager and coordinate existing subcontractors across the 35 storey, 466 home build to rent (BTR) project. The company has been building its presence in the North West, with the new staff helping to bolster the company’s growing team.

Carillion started work on Angel Gardens in January 2016 after Apache Capital and Moda agreed a record-breaking £85m BTR senior debt facility with Deutsche Pfandbriefbank.

The spokesman added: “Today’s announcement will cement confidence in Moda’s in-house resources as it looks to deliver a £1.7bn pipeline of 6,000 rented homes in core cities across the UK, with other schemes in Birmingham, Edinburgh, Glasgow, Leeds and Liverpool.

Andrew Parker, director of projects at Moda, said: “We have had contingency plans in place for some time and wanted to prioritise saving jobs, as we hugely appreciate the critical role played by the main sub-contractors and small businesses that support major projects.

“We have always remained close to the key sub-contractors and suppliers throughout the process and this has proved to be an essential part of the solution to keeping Angel Gardens on track.”

Adrian Dobson, commercial director at Caddick Construction said: “The fast and effective takeover of this complex project is testament to the strength and depth of our team. We are fortunate that our construction team has been able to step in and take this project forward within two weeks and we are delighted that so many key Carillion employees elected to join the group, as this really strengthens our team in the North West.”

Tony Brooks, managing director at Moda, said: “Both Deutsche Pfandbriefbank and our strategic funding partner Apache Capital are fully behind this strategy.

“We are very disappointed by the Carillion collapse but we have been able to get the job back on track.”

The Caddick Group, of which Moda is part, has a long-standing and deep-rooted relationship with the supply chain, according to Johnny Caddick, a director at Caddick Group.

He added: “Moda has significant projects across the UK which shall continue as normal. We expect to start on site with a further four high quality build to rent schemes this year in Liverpool, Edinburgh, Leeds and Birmingham.”

Richard Jackson, managing director and co-founder of Apache Capital, said: “Given the adverse circumstances this is a phenomenal effort by the wider team and underpins the quality of our partnership with Moda and Caddick Construction.”