"At Southwark Council, we give a great deal of thought to the benefits very tall buildings actually bring to their local area. As a council with a large landholding, we understand the advantages of tall buildings in the right communities, but we will not allow something that gives carte blanche to developers to build very tall buildings where they are not appropriate."
While at Liverpool they let you build any old rubbish, conveniently forgetting we have a world heritage site.
FIVE YEARS TOO LATE FOR US
Liverpool developer Beetham's fate hangs on inquiry decision
Mar 11 2009 EXCLUSIVE By Barry Turnbull, Liverpool Daily Post
PROPERTY development group Beetham is anxiously awaiting the outcome of a government inquiry into its landmark scheme in central London.
According to details in accounts filed at Companies House, the future viability of at least part of the Liverpool-based group depends on a favourable planning decision by Hazel Blears, Secretary of State for Communities and Local Government, later this month.
Beetham group has huge debts but hopes approval for its London project, a joint venture with a Russian billionaire, will secure its future.
Some of its bank funding is expected to be withdrawn if the planning inquiry into the scheme at Blackfriars is unsuccessful.
An injection of £112m from Russia’s Mirax group and extra bank cash has helped stabilise the business, but, if plans collapse, Beetham will be forced to try and raise further funds and sell assets to continue trading as a going concern. A positive result will underpin group finances.
Minister Hazel Blears is to announce the results of the inquiry by March 26 at the latest.
The Jumeirah Group has already agreed to operate a hotel at the 52-storey tower close to Blackfriars Bridge. The tower would also include 96 luxury flats.
A spokesman for Beetham said there would be no comment until after the inquiry decision had been made public.
Last year, the Daily Post reported that Beetham had been forced to renegotiate its bank funding in the face of debts of £300m. The firm’s auditor warned there was a material uncertainty which may cast significant doubt about the ability of a number of Beetham companies to continue trading.
Property mogul Sergei Polonsky’s 50% stake in Blackfriars and £80m of bank backing has bought Beetham breathing space. In addition, documents filed at Companies House in January reveal that the Beetham family has injected £40m into the business through loan notes. Hugh Frost has lent £28m and Stephen Beetham £12m, though it is not clear when these loans were issued.
In the accounts of Beetham Ltd, lodged in September, 2008, company auditor Deloitte & Touche stated: "In June, 2008, the group secured funds from a new joint venture partner and also successfully negotiated a 12- month bank facility secured on the development site.
Mar 11 2009 EXCLUSIVE By Barry Turnbull, Liverpool Daily Post
PROPERTY development group Beetham is anxiously awaiting the outcome of a government inquiry into its landmark scheme in central London.
According to details in accounts filed at Companies House, the future viability of at least part of the Liverpool-based group depends on a favourable planning decision by Hazel Blears, Secretary of State for Communities and Local Government, later this month.
Beetham group has huge debts but hopes approval for its London project, a joint venture with a Russian billionaire, will secure its future.
Some of its bank funding is expected to be withdrawn if the planning inquiry into the scheme at Blackfriars is unsuccessful.
An injection of £112m from Russia’s Mirax group and extra bank cash has helped stabilise the business, but, if plans collapse, Beetham will be forced to try and raise further funds and sell assets to continue trading as a going concern. A positive result will underpin group finances.
Minister Hazel Blears is to announce the results of the inquiry by March 26 at the latest.
The Jumeirah Group has already agreed to operate a hotel at the 52-storey tower close to Blackfriars Bridge. The tower would also include 96 luxury flats.
A spokesman for Beetham said there would be no comment until after the inquiry decision had been made public.
Last year, the Daily Post reported that Beetham had been forced to renegotiate its bank funding in the face of debts of £300m. The firm’s auditor warned there was a material uncertainty which may cast significant doubt about the ability of a number of Beetham companies to continue trading.
Property mogul Sergei Polonsky’s 50% stake in Blackfriars and £80m of bank backing has bought Beetham breathing space. In addition, documents filed at Companies House in January reveal that the Beetham family has injected £40m into the business through loan notes. Hugh Frost has lent £28m and Stephen Beetham £12m, though it is not clear when these loans were issued.
In the accounts of Beetham Ltd, lodged in September, 2008, company auditor Deloitte & Touche stated: "In June, 2008, the group secured funds from a new joint venture partner and also successfully negotiated a 12- month bank facility secured on the development site.
"This bank facility is due for renewal in June, 2009, and is conditional on the successful resolution of a review into the planning application by the Secretary of State in January, 2009.
"The directors are confident that a successful outcome will be achieved from the planning review and that, as a result, an adequate level of funding will continue to be made available, enabling the group and companies to continue as going concerns.
"If the review process is extended or requires the planning application to be amended, the directors believe that, despite difficult market conditions, adequate funding will be obtained through replacement loans or via the sale of unencumbered assets.
"The directors recognise this material uncertainty may cast doubts on the company's ability to continue as a going concern." The Blackfriars scheme was originally backed by Southwark Council, but then Ms Blears called in the plans, in March, 2008, amid concerns about over-development of tall buildings in that part of London.
"The Beetham Blackfriars scheme is a unique project which we knew could potentially attract a great deal of interest from investors," said Mark Jeffers, a partner at Red Chilli Structured Finance, who put together the joint venture with Mirax.
"The ability to sell a 50% stake at such an early stage of the project was clearly an achievement. However, the joining of forces of one of the UK’s most promising developers with a conglomerate of Mirax’s calibre and international presence was very desirable.
"The apartments in the scheme will be aimed at the international market and having our Russian friends as partners increases the reach into this increasingly important economy."
Red Chilli also arranged an £80m loan from Royal Bank of Scotland as part of the agreement.
Beetham has debts on many of its projects including residential towers in Liverpool, Manchester and Birmingham which have struggled to attract buyers. However, the company has had success in renting out properties to produce a steady income.
Mr Frost said last year that a successful conclusion to the Blackfriars proposal would release sufficient funds to solve the banking problems.
Cllr Paul Noblet, Southwark Council’s executive member for regeneration, said: "We are now waiting for the decision by the Secretary of State about Beetham Towers. Our planning committee considered this application very carefully before approving it, and we continue to support it because we are confident that it will bring many benefits to local people.
"At Southwark Council, we give a great deal of thought to the benefits very tall buildings actually bring to their local area. As a council with a large landholding, we understand the advantages of tall buildings in the right communities, but we will not allow something that gives carte blanche to developers to build very tall buildings where they are not appropriate."
"The directors are confident that a successful outcome will be achieved from the planning review and that, as a result, an adequate level of funding will continue to be made available, enabling the group and companies to continue as going concerns.
"If the review process is extended or requires the planning application to be amended, the directors believe that, despite difficult market conditions, adequate funding will be obtained through replacement loans or via the sale of unencumbered assets.
"The directors recognise this material uncertainty may cast doubts on the company's ability to continue as a going concern." The Blackfriars scheme was originally backed by Southwark Council, but then Ms Blears called in the plans, in March, 2008, amid concerns about over-development of tall buildings in that part of London.
"The Beetham Blackfriars scheme is a unique project which we knew could potentially attract a great deal of interest from investors," said Mark Jeffers, a partner at Red Chilli Structured Finance, who put together the joint venture with Mirax.
"The ability to sell a 50% stake at such an early stage of the project was clearly an achievement. However, the joining of forces of one of the UK’s most promising developers with a conglomerate of Mirax’s calibre and international presence was very desirable.
"The apartments in the scheme will be aimed at the international market and having our Russian friends as partners increases the reach into this increasingly important economy."
Red Chilli also arranged an £80m loan from Royal Bank of Scotland as part of the agreement.
Beetham has debts on many of its projects including residential towers in Liverpool, Manchester and Birmingham which have struggled to attract buyers. However, the company has had success in renting out properties to produce a steady income.
Mr Frost said last year that a successful conclusion to the Blackfriars proposal would release sufficient funds to solve the banking problems.
Cllr Paul Noblet, Southwark Council’s executive member for regeneration, said: "We are now waiting for the decision by the Secretary of State about Beetham Towers. Our planning committee considered this application very carefully before approving it, and we continue to support it because we are confident that it will bring many benefits to local people.
"At Southwark Council, we give a great deal of thought to the benefits very tall buildings actually bring to their local area. As a council with a large landholding, we understand the advantages of tall buildings in the right communities, but we will not allow something that gives carte blanche to developers to build very tall buildings where they are not appropriate."
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