Get Living has reported a loss of £153.2million for its last financial year after allocating £411million to cover fire safety remediation costs at the former 2012 Olympic athletes village in Stratford, East London. However, the Build-to-Rent landlord expects the provision to “reduce significantly” in future years.
The loss for the year to 31 December follows a larger loss in the previous year of £385.2million.
The former Olympic athletes village, now named the East Village, was bought by Get Living’s investors after being repurposed into a residential estate of more than 3,800 homes across 66 blocks of up to 12 storeys. Over a third of the homes are designated as affordable housing.
Rick de Blaby, chief executive of Get Living, said: “The extent of the works required to remediate the building safety defects at East Village, delivered by government-appointed contractors, requires us to make an appropriate provision of £411.1million.”
“As we pursue those contractors, we expect that provision to reduce significantly in future years.”
“The consequence of the fire safety provision is a year-end net loss of £153.2m.”
Get Living is currently facing additional remediation costs after it was ordered by a tribunal to pay £18million in relation to cladding on the East Village, which it has appealed against.
The developer is also involved in a dispute with Triathlon Homes, a partnership of First Base and housing associations, Southern and L&Q that operates 1,400 affordable homes in the East Village site, over who is responsible for fire safety costs in part of the scheme.
For the financial year, Get Living saw its rental income increase to £113.5million, up 6.2% year-on-year. Its portfolio also grew to 4,567 homes, an increase of 16.6%.
