Telford Homes, the London-based private rental developer, has recorded a £193million loss for the last financial year after being hit by building safety costs.
The developer was purchased by global real estate investor, CBRE, back in 2019 for £267million, but has only returned a pre-tax profit once since.
The loss recorded for the 2022 financial year is the second consecutively for Telford Homes after reporting a £14million loss in 2021. This was mostly down to delays and costs encountered on the developer’s 27-storey Balfron Tower scheme in East London following a subcontractor failure.
Telford Homes has stated that signing the Government’s Building Safety Pledge earlier this year has been largely responsible for this year’s loss, with the developer estimating that fire safety remedial works costs will reach £143million over the coming years.
A spokesperson for Telford Homes released a statement saying: “Telford Homes’ financial performance in 2022 was impacted by the macro-economic environment, particularly elevated inflation, and reserves taken on future remediation work associated with the Government’s Building Safety Pledge. We continue to see long-term secular trends that benefit the build-to-rent market in the UK and are also exploring other attractive residential sector growth opportunities.”
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