Crest Nicholson pulls out of Erith Western Gateway

Crest Nicholson has pulled out of a major development in the Thames Gateway because of the "increasingly difficult climate".

Crest Nicholson beat Barratt Homes, Generator, Gleeson Homes and Moat Homes with Bouygues to win a role delivering the Erith Western Gateway scheme for Bexley Council and the Homes and Communities Agency last August.

But Chris Tinker, group board director and regeneration scheme said that the developer would withdraw from the project because of the "extraordinarily turbulent times".

Last week, Crest Nicholson's lenders reached a debt-for-equity swap agreement with the the company, reducing its debt by £630m for a 90% stake in the company.

Philip Dibsdale, area director for the South London Gateway at the Homes and Communities Agency, said: "We are disappointed Crest Nicholson has had to withdraw from its involvement in Erith but can confirm that we remain fully committed to the regeneration of the Erith Western Gateway.

"The HCA is working closely with the London Borough of Bexley to enable the redevelopment of this area to begin as soon as possible."