A PROPERTY company chosen to join financiers ING in taking forward Chester’s Northgate Development project has posted losses of almost £4.8bn.
In February Land Securities – which owns the Greyhound Retail Park – agreed to investigate the viability of a revised city centre regeneration scheme.
Then earlier this month Land Securities made a £4.77bn pre-tax loss for the year to March 31 but spokesman Donal McCabe said the sum was “nearly all a paper loss” due to falling property values.
He said: “Our results reflect what’s gone on in the wider property market. We are still very much the biggest property company in the UK and still looking at a number schemes including Chester.”
Land Securities could still pull out if it decides it cannot make enough profit from a new version of the Northgate Development.
And there have already been question marks about the health of the business after it turned to existing shareholders to raise £756m, although the firm said this was ‘prudent’ in the current economic climate.
The original Northgate Development aimed to bring a House of Fraser department store, new shopping streets, market hall, apartments, a performing arts centre and library.
But it stalled because of falling property values.
Land Securities was selected by ING and the now defunct Chester City Council, which owns part of the site, as the preferred development partner following a process of due diligence.
Land Securities’ schemes have secured the British Shopping Centre Industry’s prize for the best retail development over the last four consecutive years.
