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Preston Tithebarn firm posts £600m losses (From Preston and Leyland Citizen)
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Preston Tithebarn firm posts £600m losses
3:42pm Thursday 16th April 2009
A PROPERTY giant behind the controversial regeneration of Preston city centre has posted a loss of almost £600million.
But bosses of the Grosvenor Group said the loss, brought on by the ongoing economic downturn, would not affect the £700m Tithebarn Project.
The Tithebarn scheme has divided opinion across Lancashire, with Blackburn with Darwen Council opposing the project and calling for it to be scaled down.
The Grosvenor Group, which developed the Liverpool One shopping centre, reported pre-tax losses of £593.9m last year against profits of £524m the year before.
But Grosvenor bosses said a 7.4 per cent drop in net asset value of its portfolio in 2008 - to £2.8 billion - reflected resilience in a market that has been devastated by the economic downturn.
Mark Preston, group chief executive, said: "This is a challenging time for the property industry and inevitably Grosvenor has been affected.
"But the impact has been cushioned by our well-diversified portfolio, low gearing, and steps taken since 2007 to curb acquisitions and reduce our development exposure."
Grosvenor cut around three per cent of its workforce at the end of last year and has ruled out further reductions in headcount as it warned it could be another three years before a market recovery.
The fear amongst many East Lancashire councils and chamber of trade bodies is that Tithebarn would reduce trade in centres such as Blackburn by up to 20per cent.
The scheme would see Preston's retail space become bigger than that of Blackburn and Blackpool combined.
Blackburn with Darwen Council is so worried about Preston's plans that it is urging people to object to the Tithebarn project and is launching a campaign to get it scaled down The property company is controlled by the Duke of Westminster who stood down as chairman of the board in 2007 after 33 years in the role.
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Your Say YourCitizen
The silver fox, Lammack, Blackburn says...
6:46pm Thu 16 Apr 09
amazed, Darwen says...
6:50pm Thu 16 Apr 09
M.DANNY, kirklees says...
7:09pm Thu 16 Apr 09
BLACKPOOL 145,000
BLACKBURN WITH DARWEN 140,000
PRESTON 129,000
then why does Preston wants a bigger retail development than Blackburn and Blackpool put together.This will effect all the Lancashire towns includung Accrington and Burnley.Blackpool ,Blackburn,Preston are similar in size no one should have bigger retail comple than what the present size is,there should be equal footing on all retail and leisure facilities in each town centres .Preston should not build its retail development the size of Manchester and Liverpool these are cities with over a half a million and million plus in catchment areas.Preston is trying to gain advantage over both Blackpool and Blackburn when it could not justify this development,why a town smaller in population than Blackburn and Blackpool requires a development seven times larger than its neighbouring towns and what effect it will have and it could kill off all theses town centres and livelihoods of traders .Preston has not consulted neighbouring towns like Blackburn,Blackpool,
Burnley etc etc ,Preston is not a city,since it was granted a city status which Blackburn with its CATHEDRAL should have got it,Preston is becoming BULLISH ABOUT ITS DEVELOPMENTS WITH NO REGARDS FOR ITS NEIGHBOURS.PEOPLE FORGET LANCASTER WAS ALLWAYS A CITY AND ITS CITY OF THE COUNTY OF LANCASHIRE. THE REGIONAL CAPITAL IS MANCHESTER WITH ITS INTERNATIONAL AIRPORTS.
Christian, Blackpool, Lancs says...
9:05pm Thu 16 Apr 09
Wikidi, Accrington says...
10:27pm Thu 16 Apr 09
Where on earth did you see Accrington bigger than bburn have you lost it yes that thing somewhere above your shoulders and then the neck.
Oh sorry I have to be more precise just in case you don't get this, your head!
Davidg, says...
3:35pm Fri 17 Apr 09
Blondie, says...
9:34am Sat 18 Apr 09
Blackburn will have nothing to worry about because it has been on self destruct for years and the new shops will see the town centre plod on in its normal fashion.
The new market rates will have traders running before it is even built.
The precint looks like a jail and the present new bus station where money has been ill spent is not a great advert for bringing in shoppers.
Blackburn applied and didn't get city status and no wonder!
Preston is a city and whilst it is not a match for the bigger cities it is still a city and a fine one at that.
johndarwen, darwen says...
10:04am Sat 18 Apr 09
Mind you reading all the responces from other readers, eveybody is killing the ozone by driving to BURY? fools...
Blondie, says...
8:06am Sun 19 Apr 09
johndarwen, darwen says...
Blackburn will never be a city
Blackburn is technically a Cathedral City but to obtain city status isn't that easy.
Maybe one day it will achieve city status but it is a long long way off.
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Wikidi, Accrington says...
4:09pm Thu 16 Apr 09
I don't see a Hyndburn councillor complaining