Multiplex sells in UK asset review

Multiplex Group, Australia's worst-performing property stock this year, will sell its stake in data storage company Global Switch in the next 18 months as it reviews its UK assets.

Multiplex shares fell 8Ac to A$2.65 on Friday, bringing its slide this year to more than 50 per cent. This was after the firm said 2005 and 2006 earnings would be below forecasts due to losses at its A$1.2 billion ($1.3 billion) Wembley Stadium project.

On May 18 Multiplex sold its stake in White City, London's biggest shopping centre, to "partially offset" interest costs incurred when it acquired a stake in UK developer Chelsfield last year.

London-based Global Switch was part of the Chelsfield acquisition. Multiplex's venture with David and Simon Reuben owns a 75 per cent stake in the company, valued at 248 million ($652 million).

Multiplex said it would book a A$18 million loss from Chelsfield this year because of higher-than-expected interest costs and accounting issues.

- BLOOMBERG