Cuts threaten 8m sq ft of London developments


Cuts across the City are threatening the development of up to eight million sq ft of office space, the Times has reported.

Following confirmation by British Land (BL) it is to hold back on building its 225m tower, nick-named the Cheesegrater, further builds are now in question, the paper argues.

BL’s plan according to its chief executive, Steven Hester is to deliver the building later and "hope it will be launched into the peak of the next upturn for City rents".

Current investment markets are "thin, nervous and negative in tone" said BL, which recently reported its commercial property portfolio fell five per cent in value.
Developments by Hammerson totalling more than one million sq ft also look "doubtful" the paper reported.

The firm suffered a considerable setback after JP Morgan pulled out of a deal to take part of St Alphage House – the developer has also announced a halt to new building, it has been reported.ADNFCR-1329-ID-18735299-ADNFCR