INDUSTRY NEWS

Olympic build feels credit crunch pinch

The credit crunch has forced developers to reduce the number of apartments in London’s Olympic build, it has been reported.

Chief executive of the Olympic Delivery Authority, David Higgins, told a House of Commons Public Accounts Committee the "impact of the credit squeeze" caused the cutback.

He explained original plans to construct a village with extra capacity had to be shelved. Mr Higgins said after 18 months of looking at the village and its future "we have been able to reduce the number of apartments from 4,200 to around 3,300".

The ODA is hoping to confirm a funding arrangement with developer, Lend Lease.

Industry magazine, Building, has reported the developer told Australian investors it had taken longer than anticipated to secure project debt for the village.

Mr Higgins recently told the publication an agreement was likely before Christmas and main construction work would begin in August.

By investing in commercial property and residential developments now, firms hope to reap rewards once the games have ended.

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