X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Multiplex is considering pulling out of several multibillion-pound projects in the UK, including one critical to Britain’s Olympic bid. Chief executive Andrew Roberts last week told analysts that Multiplex plans to “rebalance” its UK development opportunities to “consolidate and focus on internally originated opportunities” and to sell off any non-core assets.

A company spokesman added: “The strategy is one of recycling capital. The development portfolio will be rationalized to leave the projects that allow the taking of profits earlier.”

The latest developments have been prompted by growing losses on the construction of London’s new Wembley Stadium, also part of the Olympic bid. News of the losses spooked the market and shares have crashed in Sydney, prompting concerns among analysts over Multiplex’s ability to raise capital to fund the euro 6.7 billion ($8.2 billion) of planned UK developments.

One analyst said they were looking very closely at Stratford City, the euro 5.9-billion ($7.3-billion) East London development and cornerstone of the capital’s 2012 Olympic bid, in which Multiplex has a 25% stake. But a decision is unlikely before the Olympic city is announced in July.

Also in question is the euro 3.6-billion ($4.3-billion) Cricklewood project and Elephant & Castle bid, where the company has made the final shortlist for the euro 2.2-billion ($2.7-billion) redevelopment in SE1. Doubts are now surfacing about whether Multiplex will continue bidding.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.