The developer’s interim statement confirms that the 1.5-acre site in Hammersmith town centre, immediately adjacent to the Hammersmith and City Line underground station has been stalled by "the lack of any currently available bank finance for the development stage". This has "left (our) original equity co-investors unable to proceed with the project as originally planned".
The proposed 325,000 sq ft mixed use commercial, retail and leisure development is now, as reported earlier, on indefinite hold, but, according to the developer, "constructive discussions are now taking place in order that the development can proceed without the need for banking finance".
DevSec’s statement doesn’t make wonderful reading. Despite decent performances on rental and development, an asset writedown of £15m wiped out an operating profit of £12m, leving them with a net loss for the first half of the year of £14m.
This has not been made worse (but not helped) by Peter Virdee’s difficulties in paying the balance due on the Oriental City development, as this has not yet been stated in any accounts. When stated, the sale should realise a profit of around £30m.