PLANS to build hundreds of apartments at Kings Waterfront, in Liverpool, are in jeopardy after housebuilder David McLean collapsed into administration yesterday.

McLean, one of the region’s best-known construction and property developers, had planned to build 429 apartments on a site next to the new Echo Arena and BT Convention Centre as part of the massive redevelopment of the Kings Waterfront area.

But yesterday the Deeside- headquartered housebuilder, which was also working with developer Langtree on a plan to build homes on Liverpool’s former International Garden Festival site, went into administration due to the downturn in house sales.

Langtree moved swiftly to say it was pushing ahead with the Garden Festival development, but the future of the Kings Waterfront development remains unclear. Kings Waterfront landowner English Partnerships is seeking urgent meetings with McLean’s administrators and will soon meet other development part- ners, including Liverpool Vision, to discuss what should happen to the site.

Hundreds of apartments have been built in Liverpool city centre in recent years, but the market has slowed since last year as the credit crunch has taken hold. The development partners at Kings Waterfront will now have to decide whether to push on with a new apartments scheme at a time when the market for such properties is depressed.

McLean was developing the project as part of a joint venture with City Lofts. City Lofts itself went into administration in July.

Alistair Macdonald, develop- ment manager for Liverpool Vision, said: “We at Liverpool Vision are very disappointed by the news that David McLean has gone into administration. We will need to review, at least in the short term, what productive use or uses might be appropriate for the undeveloped part of the Kings Waterfront site.”

A spokeswoman for English Partnerships said: “We will be speaking to the administrators as soon as possible in order to fully understand the implications of this for any arrangements which English Partnerships has with the company.”

A city council spokesman said: “Clearly it’s a very difficult time for the construction industry, and we will be talking to the adminis- trators and our partners to find a way forward for this site.”

The planned £250m Langtree McLean scheme for the former International Garden Festival site in Otterspool, which includes 1,308 apartments and 66 town houses on the site, was finally approved by communities secretary Hazel Blears in July.

The scheme had been in the pipeline for years and was vigorously opposed by some nearby residents.

Yesterday, John Downes, managing director of Langtree Group, said he was disappointed at news of McLean’s troubles, but said he would push ahead with the Otterspool scheme.

He said: “This news will inevit- ably delay progress a little, but will not stop the project. Lang- tree remains absolutely commit- ted to delivering the scheme.

“Having recently secured planning permission, we are currently drawing up the site remediation and garden management strategy required for the site to move the scheme forward.

“Langtree Group is in a very strong financial position with a healthy balance sheet and has the ability to deliver the project on its own, if needed. We will of course work with the administrator of David McLean Holdings to progress the scheme and until a permanent solution is found to their issues.” McLean had a turnover of £160m, and about 320 employees, including 130 head office staff in Deeside.

The group made a huge contribution to the regeneration of Liverpool, with city centre apartment schemes at Kent Street, in the Ropewalks area, and some of the initial develop- ments at Princes Dock, including the Crowne Plaza Hotel, to its credit.