FEARS have been raised over the future of a long-awaited £575million regeneration of a notorious Southend estate after the failed merger of the firm behind the scheme.

Swan Housing association has confirmed a potential merger with Coventry-based firm, Orbit, has broken down following a “lengthy and detailed due diligence process”.

The housing association, behind three major developments in Southend and Basildon, has begun new talks over a possible merger.

Firm bosses say they are now in discussions with fellow housing association, Sanctuary Housing, over a deal which could see the two combine.

Tony Cox, leader of Southend Conservative group, fears the protracted merger talks are threatening the project.

He said: “They can talk to anyone but if they are not financially stable, that’s the case. I worry about the Queensway project going ahead but I also worry about the residents already under Swan Housing.”

READ MORE >>>

Swan is behind the £575million regeneration of Queensway, which will see tower blocks demolished and replaced with 1,760 new homes, new shops and cafes.

The firm is also working on the redevelopment of the Craylands Estate, in Basildon, as well as the Laindon Centre, which includes a new supermarket and 224 new homes.

Andrew Baggott, Tory leader of Basildon Council said: “As a council we will do all we can to get the best possible deal for the residents of Laindon and Craylands.

“We want our residents to be as proud as they can about the area they live, and that’s why we are working hard behind the scenes to find out how we can help move this situation forward.”

Swan’s chief executive Susan Hickey said: “We’re committed to exploring opportunities that will ensure Swan can continue our vital work in serving our customers, regenerating local communities and delivering on our commitments.”

Ian Gilbert, cabinet member for economic growth, said: “Although the Orbit news is disappointing and can only be described as a setback, I am encouraged that Swan are now in talks with Sanctuary Housing, one of the UK’s largest housing providers.

“Officers have been in discussions with Swan since this news broke.”