As the Bond Corporation withdraw from their A$1bn commitment to the Chifley Square office development in Sydney, speculation is rife that their St George’s Hospital development in London will face the same fate. The Australian conglomerate are involved in reducing the financial burden represented by their international property investment empire.
The interest in St George’s Hospital has been the chief asset in Bond’s British property portfolio since they bought out Imry Merchant Developers’ 50% stake in the development on Hyde Park Corner for £37.9m.
Work is already under way on the 124-bedroom hotel — which is being developed jointly with Hongkong & Shanghai Hotels — and 220,000 sq ft of offices.
Bond bought their original 50% stake last May for about £30m. Imry had previously obtained planning permission and negotiated with the Grosvenor Estate for a long lease.
Under the terms of the deal, Imry were required to surrender their freehold on half of the site in exchange for a 175-year lease on the whole.
The Bond Corporation are refusing to comment on the future of the St George’s project — but point to their recent US$120m acquisition of a 50% interest in a scheme on the outskirts of metropolitan Rome as proof of their commitment to international property development.
BCIL have bought 50% of the issued capital of Seabrook Corporation and 50% of Parich, which owns 90% and and 10% respectively of the 701-acre site.
Work is expected to start on the land in November, with completion of the complex scheduled for 1993.
Alan Bond, head of the eponymous corporation has agreed to relinquish an equity stake in Chifley Square after problems with raising finance for the 43-storey office scheme.
Bond’s role will probably be taken up by Japanese institutions who have already been approached by the project’s financiers.
