September 2007 Archives

Fresh concern over the future of the UK's proposed tallest building, the Shard of Glass emerged yesterday as investment group CLS announced that it was unable to secure funding for the project due to the global credit crunch.

CLS, which is developing the scheme, that includes the Shard of Glass and the adjacent London Bridge House, dubbed the "Baby Shard" along with Sellar Properties and Simon Halabi has warned that the adverse credit markets were affecting negotiations to secure funding.

The recent adverse credit markets have affected negotiations for funding, despite them reaching an "advanced stage". Major works on the tower will be put on hold until funds are secured.

The recently publicised "credit crisis" has caused widespread concern that rental growth values are set to fall in the near future.

With increasing concerns over the stability in the market, and ever increasing uncertainty over the completion of flagship developments, large corporates are backing away from committing to large scale pre-lets, and are opting for more stable, shorter term, solutions. This change in approach appears to be paving the way for the serviced office industry.