Multiplex’s £900m One Nine Elms site still not back at full capacity

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Work has yet to instrumentality to afloat capableness astatine the troubled One Nine Elms operation tract successful London.

It is much than 3 months since Construction News revealed that workers were sent packing from the £900m tract aft the client, China-based R&F Properties, failed to wage contractor Multiplex what it was owed. At the time, CN understood that workers expected to beryllium backmost connected tract aft 3 months.

CN visited the tract earlier this week, and portion determination were immoderate unit present, it was wide that it was not backmost to afloat capacity. One transportation motortruck did permission during that clip and determination was immoderate drilling going on, portion lifts were going up and down the 2 towers, but implicit the people of the greeting lone a fistful of radical entered the site.

Market sources confirmed to CN that the tract was not moving astatine afloat capacity. They besides confirmed rumours, archetypal explored by Property Week, that the developer is weighing up options to refinance One Nine Elms.

CN asked to talk to the tract manager astir the existent situation, but was lone fixed an email code for the individual. At the clip of publication, they had not responded to CN’s correspondence.

R&F itself has been beset with fiscal problems, which person forced it to merchantability disconnected parts of its London spot portfolio. In February, its Hong Kong subsidiary was enactment successful “selective default” aft it agreed with its lenders to hold a $725m (£539m) indebtedness repayment. At the time, the genitor company’s recognition standing had not changed, but recognition standing bureau S&P Global said it could inactive beryllium cut.

Now, R&F’s spot portfolio connected the coveted Nine Elms agelong of southbound London is constricted to One Nine Elms, aft it sold its different 2 properties to different developers.

In March, it sold its Vauxhall Square tract to Hong Kong-based developer Far East Consortium, losing astir £60m successful the process. It followed that up by selling its 50 per cent involvement successful Thames City to spouse CC Land past period for astir £275m (2.66bn Hong Kong dollars). The developer said it mislaid astir £190m done the transaction.

R&F inactive owns One Nine Elms and Queen’s Square successful Croydon, which it acquired backmost successful 2017. Ardmore was appointed connected an aboriginal signifier of the Croydon job, worthy £100m successful 2019, though enactment stopped that twelvemonth pursuing doubts implicit plans to physique a £1.4bn Westfield buying centre nearby.

The Westfield task was axed successful 2021. Previously, a spokesperson for R&F said it was “formulating a remobilisation plan” for Queen’s Square, pursuing the determination regarding Westfield.

Last month, workers astatine the One Nine Elms tract were fined thousands of pounds for holding a enactment portion the UK was successful lockdown successful 2021. Five men and a pistillate were recovered celebrating St Patrick’s Day connected site, wherever they had acceptable up a bar.

R&F UK president Zhixiong Guan said: “R&F Properties remains afloat committed to One Nine Elms and this is reflected successful the continued beingness of our operation squad connected site, wherever enactment is continuing.

“We look guardant to completing the improvement and welcoming guests to London’s archetypal Park Hyatt edifice astatine One Nine Elms successful the coming months.”

CN has approached Multiplex for comment.

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