Olympics village in £200m shortfall

The Olympic
Delivery Authority
is in tough negotiations with Australian developer
Lend Lease over the
funding of the project to build 3300 homes in Stratford’s Olympic Park.

The shortage of credit in financial markets is undetrstood to be behind Lend
Lease’s attempt to reduce its contribution to the £800m public-private scheme
from £600m to £400m, the Standard reports.

Negotiations are expected to continue over the coming months and ODA could be
forced to fund the difference if the developer refuses to back down. ODA has set
aside £492m to fund the village and media centre – a budget which now looks
inadequate, forcing ODA to dip into the £2.7bn in contingency funds.

The village will provide accommodation for 16,000 athletes during the games
and Lend Lease aims to profit by sale or lease of the flats after the games and
is said to pressure ODA to guarantee returns in an unsettled property market.

Further reading:

London Olympics bill again under fire

the Standard story

Related reading