The Olympic Village’s developer has warned the Australian stock exchange, UK activities will hit its group profits, Bloomberg has reported.
Lend Lease said it expects net profit to fall by nearly half (47 per cent) after a £58 million write down from its UK arm, Crosby Homes.
The company’s net income has fallen by 46 per cent, leaving its creditors worried it will struggle repaying borrowed money.
Lend Lease said: “The Corporation will continue to focus on creating long term shareholder value by leveraging its strong financial position.”
Reuters reported Land Lease’s chief executive Greg Clarke said he did not expect the UK property market to recover either this year, or the next.
The Olympic Village is central to plans to rejuvenate the east end of London – it is hoped some of the costs incurred will be recouped following the sale of commercial property after the Games.
London Mayor Boris Johnson’s latest review of costs found in seven months the construction bill for the games increased by £106 million.