Liverpool skyscraper developers Beetham agree deal with bankers

Jul 9 2008 by Bill Gleeson, Liverpool Daily Post

THE property group behind two of Liverpool’s landmark city centre towers has faced financial difficulties that have forced it to renegotiate the terms of its bank borrowings.

Companies trading under the Beetham name have asked their bankers for more time to repay tens of millions of pounds of debts that in some cases were due in May and June of this year.

Problems have arisen due to the credit crunch and a downturn in the UK housing market. The debt renegotiations come as Beetham’s financial state was highlighed by its auditors, Deloitte & Touche.

The accountancy firm used the auditors’ report, published in the most recent set of accounts, to draw attention to what they described as a material uncertainty which may cast significant doubt about the ability of a number of Beetham companies to continue trading.

Beetham’s developments include the 40-storey West Tower in Liverpool city centre.

It has also built Beetham Tower and the Radisson SAS hotel, on Old Hall Street, and Beetham Plaza, as well as other buildings in the city.

The company has also constructed a 44-storey tower in central Manchester and other developments around the country.

In an exclusive interview with the Liverpool Daily Post, the company’s founder, Hugh Frost, said the Beetham companies were capable of trading out of their present difficulties.

Beetham now hopes to service its debts from rental income from lettings instead of selling its portfolio of unsold apartments.

Beetham family companies hold in excess of £300m of debt on their balance sheets. This includes £153m owed on hotel and apartment schemes in Liverpool, Manchester and Birmingham. Beetham-related companies also owe £160m against developments in central London at Blackfriars and The Minories.