Elements Europe - Case Update

The joint administrators of Elements Europe have sold one of the company’s two projects—a part-developed hotel and office project in Hackney—back to the previous owner, South Korean construction giant GS Engineering & Construction.

Elements specialised in manufacturing room modules and bathroom pods for clients including residential developments, student accommodation and hotels. It was acquired by GS Engineering & Construction in 2019.

Historically, Elements acted as subcontractor, but took on two construction projects as main contractor in 2021—the Camp Hill project in Birmingham and the East Road project in Hackney, east London. The move reportedly caused the company to struggle financially, with both projects resulting in losses and the company needing a significant cash requirement.

Sam Birchall and Steve Absolom of Interpath Advisory were appointed joint administrators on 4 June.

Now, GS Engineering & Construction has bought back the company’s interest in the Hackney site, allowing the 21-storey hotel and office development to be completed. The joint administrators said the sale means subcontractors will be brought back to the site in short order.

The administrators are continuing to explore options for the Camp Hill project in Birmingham.