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Ground Rents Seeking Costs From Carillion For Beetham Tower Works

LONDON (Alliance News) - Real estate investment trust Ground Rents Income Fund PLC on Tuesday ...

Alliance News 12 February, 2019 | 12:01PM
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LONDON (Alliance News) - Real estate investment trust Ground Rents Income Fund PLC on Tuesday said it is continuing to take advice on how to deal with a High Court judgment against the firm.

In a annual general meeting statement, Chair Malcolm Naish said: "The court ordered the temporary hoardings which had been erected by Carillion outside the hotel as an exclusion zone to be removed by 28 February 2019. It is expected that the completion of their removal will be finished within days."

"The cost of the permanent remedial works to the facade of Beetham Tower, Deansgate, Manchester, has been estimated by NWGR's advisers, based on their recommended solution, to be approximately GBP4.0 million, excluding VAT, any professional advisory costs and damages yet to be determined."

Carillion was the contractor which constructed the building, therefore the company is pursuing the proceedings it has already issued against Carillion, it said. If successful the liabilities to be paid by Ground Rents will be substantially lowered.

Ground Rents owns the Beetham Tower in Deansgate, Manchester, and one of its tenants is Blue Manchester Ltd.

Blue Manchester alleged a failure of a structural sealant on "a number" of shadow box units which form part of the facade of the building. They also alleged remedial work done to date has not been of a sufficient standard.

The High Court has found in favour of Blue Manchester, Ground Rents said.

Ground Rents must pay GBP250,000 in costs to Blue Manchester within 28 days, with a final amount to be finalised.

Further, Blue Manchester is also entitled to damages due to the release of dirty water into the building's water supply due to poor maintenance.

Ground Rents shares were trading flat at 105.00 pence each on Tuesday.

By Elena Cherubini; elenacherubini@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Ground Rents Income Fund Plc 92.55 GBX -0.75 -

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