Troubled Australian developer Multiplex has sold its 25% stake in the £4bn Stratford City regeneration project in east London to the Reuben Brothers.
In an announcement to the Australian Stock Exchange the group said it had disposed of “certain interests and rights” in relation to the Stratford project, which will include part of the 2012 Olympic Village.
It also confirmed the sale of its 37.5% stake in data centre business Global Switch to David and Simon Reuben.
Multiplex said that total proceeds from the sales would total £127.5m.
The disposals leave the Reubens with a 50% stake in Stratford City alongside partners Westfield and Stanhope, which both own 25%.
The Reubens now own 75% of Global Switch, with Morley Fund Management owning the remaining 25%.
Multiplex picked up the stakes in Stratford and Global Switch at the end of last year after paying £585m for private property group Chelsfield in a joint venture with fellow Australian developer Westfield and the Reuben brothers.
Multiplex said that as part of the deal with the Reuben brothers it would “maintain the right to participate in the development and construction opportunities at the Stratford project”.
Alongside Bechtel and Bovis Lend Lease, Multiplex is bidding to be project manager for the project.
Today’s announcement came as Multiplex said that the situation at Wembley stadium was worse than previously expected.
It said it now expected to take a £70m hit from delays to completing Wembley stadium and other business factors leaving it in a “substantially adverse” position from previous predictions for 2006.
Multiplex shares sunk following the warning, dropping 8.46% to £1.33.
Multiplex said it continued to target completion of the Wembley stadium to enable the 2006 FA Cup Final to be played.
References: EGi News 19/12/05
