Multiplex withdraws from White City

Multiplex has withdrawn from the £1.5bn White City development in London. From today Westfield, the developer of the project, will take charge of all construction works.

In a statement to shareholders, Multiplex said: "Multiplex has agreed that Westfield will assume full responsibility for the remaining design and construction works for the White City project, effective immediately.

"This follows an approach from Westfield and recognises the substantive nature of design changes and enhancements implemented by Westfield since taking control for the development of the scheme in May 2005. Westfield will assume full responsibility for delivery of the project including control over all design matters, and all building works from today.

"The margin Multiplex has achieved on the construction contract for the White City project is consistent with that which the group would normally expect to record on a construction project given its stage of completion."

No further detail on the "margin" was forthcoming. 

As well as Multiplex's White City subcontractors being assigned to Westfield, in something of a surprise move "the agreement provides for the secondment or transfer of Multiplex UK construction personnel directly engaged on the project to Westfield", the statement revealed.

Multiplex chief executive Andrew Roberts re-iterated the group's commitment to its current external portfolio of projects: the Cricklewood urban regeneration scheme, and Castle House in London, and Peterborough Hospital. 

The news about White City emerged as Multiplex revealed its figures for the year to 30 June. Losses incurred at Wembley amounted to £147m. The construction division made a loss before interest and tax of £129m on turnover down slightly to £998m. Overall the group's turnover dropped 4% to £1.3bn, generating a post-tax profit of just £88m.