Having to leave tenants waiting will be the biggest problem for Lend Lease after yesterday’s crane fire, according to a note from Goldman Sachs released after the incident.
Construction was halted at the Barangaroo development following a suspected welding accident which sparked a huge fire, shutting down roads in the CBD, and forcing the evacuation of several buildings.
“We expect that insurances are in place to cover this type of risk and therefore the primary issue is that of timing and delivery for tenants who have pre-committed to leases,” Goldman’s analysts wrote.
“If heat-affected areas need to be demolished and rebuilt in the basement, this will cause a delay. This seems to be an outside risk, however.”
We’re still waiting for an official comment from Lend Lease on how long construction will be pushed back for. Crews were still on the scene this morning, putting out spot fires in the crane basement.
There were fears the 1100 degree heat could have damaged the foundations of the crane. Though it appears it has survived the inferno more or less intact.
“We have had engineers there and they have advised that there is no structural damage to the crane,” a Lend Lease spokesperson told us this morning.
Shares were up 0.62% to $11.38 shortly after the open, in line with the market. Here’s a link to the live price.