Could credit crunch put Tropicana plans at risk?

12.00.00am BST (GMT +0100) Mon 23rd Jun 2008

Weston-super-Mare campaigner Mike Bell fears that the "credit crunch" may cause plans for the Tropicana to be delayed or abandoned

The credit crunch could have serious implications for the proposed Tropicana development in Weston-super-Mare, Liberal Democrat Parliamentary Candidate Mike Bell has warned as he revealed that the value of shares in developer Henry Boot have slumped by 60% in the past year.

According to research conducted by Mr Bell, shares in Henry Boot plc - the parent company to Tropicana developers Henry Boot Developments - were trading at £2.77 each on 25 June 2007. Shares are currently trading at around £1.09 each - a fall of more than 60% in a year.

Mr Bell commented: "The banking crisis, falling house prices and the general difficulty in securing financing is putting the economy under real pressure. That situation is reflected in Henry Boot's falling share price as, in common with many property companies, they face up to a challenging financial climate.

"There is no doubt that the situation will have a direct impact on the availability of private finance and tenant demand for space in the proposed Tropicana development. That last thing Weston needs is for progress to be delayed or the development put at risk part way through.

"I have written today to the chief executive of North Somerset Council to ask for assurances that the financial soundness of Henry Boot is being constantly reviewed. I have also written to the managing director of Henry Boot Developments, David Anderson, to ask him to reassert his firm's commitment to the Tropicana development, despite the economic uncertainty.

"Local people are rightly lobbying hard to make sure that the Tropicana is open again as soon as possible and with the best possible design. But we must not ignore the very serious financial challenges that must be overcome before a spade hits the ground."