Mace Nova site finishes late and busts budget

Land Securities has confirmed its Nova project in Victoria has busted the budget and overrun by nine months.

The first phase of the scheme where Mace was main contractor was completed last month.

The developer said: “The complexities of construction – together with competition for labour in a busy sector – delayed final completion and impacted costs.”

The scheme was also hit by the failure of main concrete specialist PC Harrington.

Work was due to finish last summer and cost £248m.

In its latest results today Land Securities said is has “paused for breath” in its major development cycle as it has largely completed its latest speculative development programme.

The developer revealed a strong set of annual results today and confirmed it has its eye on the next round of opportunities in the property market.

Chief executive Robert Noel said: “Put simply, our markets remain in good health but they’ve paused for breath.”

“The foundations of the business are rock solid, underpinned by our resilient portfolio and low leverage.

“We’ve achieved our plan to have minimal development exposure and longer lease terms in London offices, a transformed retail portfolio and low gearing at this point.

In the short term, with significantly reduced risk and a portfolio of first class assets, we go forward in excellent shape, ready to make acquisitions when the time is right.

“Longer term, we remain confident in our market and our ability to deliver sustainable growth.”

Plans are being drawn-up for a second Nova East phase and Land Securities also has planning at 21 Moorfields in the City where demolition is complete with piling work set to start shortly ahead of construction of a raft that will sit above the eastern entrance to Liverpool Street Crossrail station.

It will be the platform for 522,000 sq ft of space across two buildings.

The firm said: “Completing the raft in July 2018 will mean we can complete construction of the buildings in 24 months, providing an excellent prospect for the pre-letting market.”

Land Securities also has planning consent for a 142,000 sq ft mixed use scheme in Westminster at 1 Sherwood Street, W1 and a 134,000 sq ft development in Southwark, at Sumner Street, SE1.

from Construction Enquirer http://www.constructionenquirer.com/2017/05/18/mace-nova-site-finishes-late-and-busts-budget/

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