'Economic conditions' blamed for Streatham Hill Megabowl delay (From This Is Local London)

'Economic conditions' blamed for Streatham Hill Megabowl delay

7:10am Friday 3rd September 2010 in

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A developer has blamed banks’ reluctance to lend money after the recession for a wait that could mean a year’s delay to the start of work on a multi- million pound regeneration project in Streatham Hill.

Redefine International, the developer behind the major residential and retail development on the Caesars and Megabowl site, said “economic conditions” were not right for construction to begin until at least the second half of next year.

When permission was given for the 243-flat scheme – which also features 3,786sq m of retail space, a 91-space underground car park, and a community theatre space – Glentoran, the company that secured planning permission for Redefine, said construction should begin by Christmas this year.

But, according to Redefine chief executive Mike Watters, banks were not offering the right deal to part-finance the project, nor were they providing mortgages for people to buy the homes when they were built.

He said: “The last thing people want is for construction to begin and then stop because the finances are not right. Then people are left with a building site for longer than necessary.

“We are well capitalised, but these projects are usually based on 50 per cent equity, 50 per cent bank debt and the banks are just not lending.”

He did not rule out construction beginning in 2012 although he said there was “no reason to think economic conditions will not be right” in 2011.

He said the company was happy with current prices in the housing market, but was concerned buyers would not be able to finance buying the flats because mortgages were still too difficult to obtain.

Mr Watters said the company was very strong financially and fully committed to the project, but would not disclose the building timeframe for the project – but during the planning process Glentoran indicated it would be about two years.

He also dismissed rumours Greg Miller-Cheevers, development director of Glentoran, had sold the project to Redfine.

He said his company had always been the financier of the project, and Glentoran’s role had been to consolidate ownership of sites and deliver planning permission, adding Mr Miller-Cheevers would be involved throughout the project.