Grosvenor is to take a further hit of at least £90m on its troubled Liverpool One urban regeneration project, EG has learned.
The total loss is thought to have escalated to £250m. Grosvenor is expected to announce the new provision on the £1bn project in its results for 2007, to be published in April.
The figure is expected to be £110m higher than the £140m loss Grosvenor revealed for the 2.4m sq ft scheme last April. The escalating loss is largely due to spiralling construction costs and higher-than-expected incentives to retailers.
In a statement issued to EG, Grosvenor said: “We plan to report on our Liverpool One development when we publish our annual report and accounts. We will not be releasing any details of cost or investment value ahead of the publication of this report.
“However, the project remains on track to deliver this year as planned, and will make a lasting impact on the heart of the city of
The company pledged to meet the council’s 2008 deadline to mark Liverpool’s year as Europe’s City of
Funding partners, including Hermes and
Mark Preston, who takes over from Jeremy Newsum as group chief executive in June, admitted last year that the design of Liverpool One had not been “far enough advanced” for the company to properly predict the costs of meeting the 2008 deadline.
He said: “We’re determined to deliver on those obligations. That means it is costing us more.”
