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Duke's shop centre loses pounds 190m value; in association with RBS.

THE property company controlled by the Duke of Westminster has suffered an additional pounds 48.8m hit at its Liverpool shopping centre.

Cost over-runs at the pounds 1bn Liverpool One development have already cost The Grosvenor Group pounds 140m in write-offs.

But the firm said the commercial property market downturn would now see provisions for the Paradise Street project total nearly pounds 190m as values were slashed in the sector. It also said a quarter of Liverpool One shops would not be let when the first phase opened next month. But Grosvenor said it had done "incredibly well" to secure retailers for 60 of the 80 shops, as it posted 2007 results showing pre-tax profits 3% up.

The group, which also owns properties on Grosvenor family holdings in Mayfair, Belgravia and Knightsbridge, said profits had hit a record pounds 524m last year, though the rise was a fraction of the 38% increase in 2006. Underlying earnings rose 82% to pounds 112.9m, excluding Liverpool One charges.
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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:Apr 15, 2008
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