THE developers behind two major building projects worth a combined £250 million have made a significant multi-million pound loss.

The U+I Group, which is partnered with Brighton and Hove City Council and the University of Brighton on the Circus Street and Preston Barracks redevelopments, has reported a pre-tax loss of £11.7 million in its half-year results.

The news has come as a further blow with the scheme now delayed for a year.

The London-based firm has blamed the loss on Brexit with uncertainty surrounding the referendum hitting their investment portfolio.

But concerns have been raised about the year-long delay with the firm’s project to build 142 homes, shops, cafes, offices, South East Dance studio, 450 student rooms and a university library on the former fruit and vegetable market in Circus Street.

The company, formed following the £20 million purchase of the developer Cathedral by Development Securities a year ago, said its loss was partly prompted by an £8.6 million drop in the value of its investment portfolio because of the Brexit vote and changes to Stamp Duty.

Revenue for the firm was also down by 27 per cent to £55 million for the six months to August this year, down from £76 million.

It was the second such significant revenue drop for the firm - which had posted a revenue of £92.4 million in the six months to August 2014.

As The Argus reported last month, the Circus Street project has fallen around a year behind schedule with the firm announcing it would have to re-tender construction contracts before work started.

When planning permission was granted more than two years ago, it had been hoped work would begin in November last year with the first student buildings completed in July and the whole project by December 2017.

Neighbour and former tenant representative Tommy Tickle said: “There are concerns when you hear this, there are worries about if the project is going to go ahead on time or at least to their new timeline.

“There were problems with Circus Street long before Brexit and commercial and housing property has held up pretty well since the vote.

“Why can’t they make something of the site while they are delayed?

“That would show that they have a good heart towards this project and to the local community.”

A spokesman at U+I Group said: “This financial performance has had no impact on the progression of the projects in Brighton. Both Circus Street and Preston Barracks were presented as key projects by our management team to analysts and investor and U+I remains fully committed to their successful delivery”

IT’S A BIG RESPONSIBILITY TO BREATHE LIFE INTO DERELICT SITES

DEVELOPER U+I has been given the heavy responsibility fo breathing new life into two sites that have sat derelict for three decades combined.

Brighton and Hove City Council bought the barracks site in Lewes Road from the Ministry of Defence in 2002 and has been working with the University of Brighton for the past seven years to develop the site.

The £150 million Preston Barracks development is projected to create more than 1,000 jobs and raise more than £500 million for the city economy in the next decade.

The 10-acre site will see the construction of a new centre for high-tech manufacturing start-up companies, 1,300 student rooms, 350 homes and shops, cafes and workshops.

The developers and the university are in the advanced stages of finalising the redevelopment plans with a planning application expected by the end of the year allowing work to begin in 2017/18.

Residents have also been awaiting the transformation of Circus Street fruit and vegetable market which has been on the drawing board for more than a decade.

The public private partnership featuring Brighton and Hove City Council and the University of Brighton proposes 142 homes, shops, cafes, offices, South East Dance studio, 450 student rooms and a university library.

The former fruit market had been home to a series of events including a regular bike hub, cycling races, charity food collections and art projects prior to its demolition in February.

Nearby businesses say the now derelict building site is having a negative impact on their trade and are desperate for the diggers to come in to speed up the delivery of long-anticipated boosts to the area.

In short, the stakes could not be higher for the city on the future of these two key sites.