A WORLD-RENOWNED Guernsey-based development company has denied that problems in Iceland’s banking system could affect its projects.
CPC Group, which specialises in premium residential projects in international markets, is working on a multi-billion dollar project to develop an eight-acre site in Beverley Hills into one of the world’s most prestigious residential addresses.
The site was bought by CPC and Iceland’s largest bank, Kaupthing, in April 2007 for $500m., the highest price ever paid for a development site in North America.
But there have been reports in the national media that Kaupthing might not want to pay its share of the $350m. loan which is due to Credit Suisse because of the current market conditions in Iceland where the third largest bank has been nationalised and the whole banking sector is believed to be in trouble.
But Christian Candy, founder of CPC, which employs about 25 people at its head office in South Esplanade, said the project was still on track.
‘Our 9900 Wilshire project in Beverly Hills is not in jeopardy,’ he said.
‘We are still proceeding at full steam ahead and nothing has changed at present. CPC Group will meet all its financial commitments and we hope that our partner, Kaupthing, is with us and will inject the necessary funds.
‘This does not affect CPC Group and its operations in Guernsey and neither will it impact on any of our other developments [One Hyde Park, Chesham Place, Chelsea Barracks or Noho Square] because each project has different investors and therefore none of our projects is cross-collateralised.
‘We remain fully committed to Beverly Hills and will see the project through. 9900 Wilshire is the best eight acres in Beverly Hills and we have a world-class team which is busy working on the project as we speak.’
Article posted on 7th October, 2008 - 2.29pm
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