Multi and Grupo Lena pull out of Forum Leiria project

Netherlands-based property company Multi Development and Portuguese developer Lena Construcoes said that they are pulling out of the development of the Forum Leiria shopping centre project in Central Portugal because of delays and the difficult economic and financial conditions.

The partnership, which was awarded the 50,000 m² project in a public contest in July 2007, said in a statement that 'the development has become unsuitable to reality due to the City Hall's delays on adjudicating the project and the adverse economic and financial conditions in the national and international conjuncture.'

As a result of the delays and the worsening market conditions, Multi and Lena said they have lost interest in the project, which was designed by Atelier Risco, and involved a total investment of EUR 170 mln.

'The difficult conditions have negatively impacted on the banking and property businesses as well as on the consumer market and they have jeopardised our strategy of financing the project with own capital,' the partnership said.