| |
| Please Note - Streaming News is only available to subscribers to the Active Level and above |
|
|
|
Persimmon identifies unsafe cladding in buildings; takes related £75m charge
StockMarketWire.com
|
House builder Persimmon said it had identified unsafe cladding materials in high-rise buildings that it had developed and would book a £75 million charge to pay for replacement work.
Persimmon's decision comes in the wake of the Grenfell Tower disaster in 2017, which saw a high-rise residential building catch fire, killing 72 people.
The company said it had identified nine high-rise buildings over 18 metres high built by the company where, in-line with government guidance, cladding may need to be removed.
Another 17 buildings below 18 metres also had been identified that 'may be fitted with cladding requiring detailed investigation'.
Persimmon confirmed that it didn't own the buildings and that the legal responsibility and duty to ensure they were safe rested with the current owners.
'Persimmon will provide technical support to ensure the building is made safe,' it said.
'However, if a building owner fails to step up and accept their responsibilities, Persimmon stands ready to provide the support necessary to make sure the work is done.'
Persimmon said it was making the move following a review of past projects. The company typically builds homes and had not been a major developer of high-rise buildings.
'However, in the past we have built multi-storey buildings which met all the fire safety rules and regulations in place at the time, but which used cladding materials which may now be considered unsafe and require removal,' it said.
Persimmon was in the process writing to building owners and management companies to inform them of the findings of its review and agree next steps.
'This is a decision which we believe is not only right for residents but also the right thing for us to do as one of the leading housebuilders in the UK,' chairman Roger Devlin said.
'We want Persimmon to be a business with a long-term, responsible and sustainable future and hope our actions today demonstrate a clear commitment to these values.'
Story provided by StockMarketWire.com
|
|
|
|
|
|
