London project ‘deferred’

The start of work on a €785 million project in London, UK, has been “deferred”, with the developer citing “increased risks in the current market environment”.

Hammerson and Standard Life Investments, the joint owners of the Brent Cross Shopping Centre in North West London, appointed UK-based Laing O’Rourke under a pre-construction services agreement as part of a two-stage tender process for the main construction works last autumn.

Now, in a strategy update at the time of its half-year results, property development and investment company Hammerson said, “Due to increased market risks and while alternative uses of capital offer higher immediate financial returns, we will defer starting on site with our development at Brent Cross.”

It added. “The scheme remains an important strategic project and we continue to recognise its role as one of London’s leading retail destinations, and will support its future success.”

David Atkins, CEO of Hammerson, said, “Through increasing the level of disposals, including exiting the retail parks sector, we will now focus solely on winning destinations of the highest quality – flagship retail destinations and premium outlets.

“These are the venues we believe will maintain relevance and outperform against the shifting retail backdrop.”