Construction problems drag LXB
Construction difficulties contributed to property developer LXB Retail Properties diving into the red despite a near doubling of revenues.
For the year ended 20th September LXB Retail Properties grew its revenues to £85.2m (2015: £46.1m) but it made a pre-tax loss of £15.1m (2015: £25.9m profit).
There were losses caused by delays in construction projects at Rushden Lakes, Stafford Riverside and Greenwich Brocklebank retail parks, the company said, impacting on delivery dates for the retailers and hence rent payments.
Losses were also caused by increased construction costs at Rushden Lakes, Stafford Riverside and Sutton.
Greenwich Brocklebank, for example, was scheduled to complete in October 2016 but main contractor Cardy Construction went into administration in August 2016. The developer is finalising terms with a new contractor to step into Cardy's shoes but practical completion is not now expected until summer 2017.
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This article was published on 21 Nov 2016 (last updated on 21 Nov 2016).