URW: raises Hamburg project costs
(CercleFinance.com) - On Friday, Unibail-Rodamco-Westfield (URW) raised its estimate of the costs associated with its Westfield Hamburg-Überseequartier shopping center project in Hamburg (Germany), the opening of which has had to be postponed.
The commercial real estate group states that the total costs of the project are now estimated at E2.16bn, compared with the previous figure of E1.64bn.
This additional cost of E520m is due to the recognition of E160m in expenses directly linked to the delay in the project, due to water infiltration, and E360m in indirect costs, notably relating to the constitution of provisions for future compensation claims, URW explains.
While this additional bill will have no impact on its annual targets, the company points out that it will affect its LTV ratio (debt/total portfolio) by around 50 basis points.
At 9:45 a.m., URW shares were down by more than 3%, posting the biggest drop in the CAC 40 index (-0.7%).
Currently the largest city-center development project in Europe, the Westfield Hamburg-Überseequartier is to house three hotels, a 200-store shopping center, ten movie theaters, a cruise terminal, two 60-meter towers and an office building.
URW announced in April that the project would be delivered late.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The commercial real estate group states that the total costs of the project are now estimated at E2.16bn, compared with the previous figure of E1.64bn.
This additional cost of E520m is due to the recognition of E160m in expenses directly linked to the delay in the project, due to water infiltration, and E360m in indirect costs, notably relating to the constitution of provisions for future compensation claims, URW explains.
While this additional bill will have no impact on its annual targets, the company points out that it will affect its LTV ratio (debt/total portfolio) by around 50 basis points.
At 9:45 a.m., URW shares were down by more than 3%, posting the biggest drop in the CAC 40 index (-0.7%).
Currently the largest city-center development project in Europe, the Westfield Hamburg-Überseequartier is to house three hotels, a 200-store shopping center, ten movie theaters, a cruise terminal, two 60-meter towers and an office building.
URW announced in April that the project would be delivered late.
Copyright (c) 2024 CercleFinance.com. All rights reserved.