Property company CLS has warned that construction of the Shard tower in the British capital may be delayed because the turmoil in the financial markets has driven up the cost of borrowing. The 72-storey glass-covered skyscraper, designed by Renzo Piano, is also known as London Bridge Tower. Its proposed height of 310 metres would make it the tallest building in the UK.
Property company CLS has warned that construction of the Shard tower in the British capital may be delayed because the turmoil in the financial markets has driven up the cost of borrowing. The 72-storey glass-covered skyscraper, designed by Renzo Piano, is also known as London Bridge Tower. Its proposed height of 310 metres would make it the tallest building in the UK.
Demolition work at the site has commenced, CLS said, and negotiations in relation to funding of the £400 mln (EUR 575 mln) project are at an advanced stage. But the talks have been affected by the recent adverse credit markets. 'It is hoped that the funding can be finalised in the near future in conjunction with a restructuring of the shareholding structure. We will not commence any major development works until the loan finance has been secured.'
The company's partners in the Shard scheme are London-based Sellar Property and Syrian-born property tycoon Simon Halabi. CLS has a property portfolio in London, France, Sweden and Germany valued at £1.1 bn.
The October issue of PropertyEU Magazine features a review of the various bids to build the tallest skyscrapers in Europe.
