Multiplex today revealed it was pulling out of the construction of White City shopping centre being developed by rival Australian property company Westfield.
Multiplex has reached an agreement with Westfield to transfer construction work for the scheme after the latter introduced a raft of significant design changes as revealed by Property Week on 18 March 2005. Westfield will now assume full responsibility for the delivery of the project including control over all design matters and all building works from today.
The agreement includes the secondment of all Multiplex construction personnel directly working on the project to Westfield.
Andrew Roberts, chief executive at Multiplex said: ‘The transfer of the construction contract for White City will accelerate the repositioning of our UK construction workbook. Our focus in the UK is predominantly on internally generated work from our own development projects – through our integrated property model.
“We remain firmly committed to maintaining a sizable UK business. In recent times we have been rationalising the number of assets acquired as part of the Duelguide transaction. Our focus has been on retaining a select number of key development projects such as the A$720 million Eden shopping centre redevelopment in High Wycombe, and the large development scheme in Newcastle City Centre.”
After the transfer of the White City project, Multiplex will retain a development portfolio in the UK with an estimated completion value in excess of A$7 billion.