Anglo Irish Asset Finance has withdrawn its development funding for Modus Properties’ 520,000 sq ft Trinity Walk Scheme in Wakefield – Modus’s only scheme under construction.
The Irish bank has informed modus and its South African joint venture partner CIREF that it intends to place Trinity Walk into administration ‘as soon as possible’.
CIREF plc has a 71.67% interest in CIREF Wakefield, one of Trinity Walk's joint venture partners with a 50% interest in Trinity Walk.
In an announcement to the stock exchange the AIM-listed company CIREF, said: ‘Work had commenced on site at end August 2007 and the site is anchored by two major retailers. Although the company is disappointed with Anglo Irish's decision, it is CIREF's current intention to work with the administrators and the development partners, including Wakefield City Council (which had recently agreed a £7m public sector support package for the development), in order to find a solution which would allow the development of the Trinity Walk retail centre to continue.
‘However, should no funding solution be found, CIREF would be required to write off approximately £6.6m attributable to equity shareholders, equivalent to a reduction of 8.96p in NAV per share.’
A further announcement will be made in due course.