Mills Corporation, the US shopping centre REIT, has been forced to abandon 10 development plans, incurring $71m (£40m) in one-off costs.
It has also had to restate accounts going back to 2000 after a year of poor results revealed “material weaknesses”, according to the chief financial officer.
The corporation owns and manages 42 shopping centres worldwide, including three in Europe: Glasgow’s St Enoch Centre, Madrid Xanadu, and Mercati Generali in Rome. Projects being written off include one in Rome and two in Spain, in Valencia and Seville.
The company ran into trouble after rapid expansion left its back office operations struggling to keep up, resulting in late billing and loss of tenants.
References: EGi News 16/01/06
