The upmarket Cardiff headquarters of Brunswick Group, the development and construction concern that collapsed with debts of around £10m this autumn, is being bought by Bailey Group.
Bailey Group, headed by South Wales developer Paul Bailey, is in the final stages of completing the acquisition of the 12,000 sq ft (1,115 sq m) Melrose Hall complex from receiver Ernst & Youngs Bristol office.
Bailey was already in talks to buy the building and other development opportunities when Brunswick fell through. The company’s collapse caused shockwaves in the regions property community where it had been a permanent fixture for more than 20 years.
Bailey is believed to have paid £1.5m for the building as well as a small area of development land, and will relocate his own business to the site at St Mellons, Cardiff. He is expected to appoint Knight Franks Cardiff office and Hutchins & Thomas, Newport, as letting agents for Melrose Hall.
Brunswick employs almost 200 people and last year turned over £50m.
The receivers were called in by Barclays Banks London commercial team amid concerns at the performance of a number of leisure and retail developments.
EGi News 06/11/01
