Luxury house builder Octagon Developments Ltd has gone into administration with all 70 staff made redundant.

David Hudson and Phil Armstrong of FRP Advisory were appointed as joint administrators this week.

The company has been in business since 1980 as a prestigious luxury property developer specialising in high-end residential homes across London and the Home Counties.

Octagon has built a strong reputation over four decades for delivering exceptional properties featuring classical architectural detailing and premium specifications.

The administration follows a period of financial pressure linked to working capital constraints due to recent outlays on site acquisitions and challenges within the company’s bespoke service line, where project delays and rising costs impacted profit margins.

Prior to the administrators’ appointment, FRP completed the sale of the company’s brand, intellectual property and certain construction contracts.

The administrators are now focused on realising value from the company’s remaining assets, which include four special purpose vehicles holding land and active housing developments.

All 70 employees have been made redundant at the business a turnover of £31.1m for the year to March 31 2023 generating a pre-tax loss of £4.3m.

David Hudson, joint administrator of Octagon Developments Limited and partner at FRP, said: “Octagon has been a leading name in luxury property development for more than 40 years, setting standards for quality and design that have helped shape the premium residential market across London and the South East. 

“While it’s regrettable that challenging trading conditions and pressures on working capital have led to this situation, we’re focused now on working to maximise recoveries for creditors. This includes marketing the company’s remaining development assets in prime locations, and we would encourage any interested parties to contact us as soon as possible.”