Paramount entertainment resort to cost £3.2 billion after consultancy fees on traffic measures and public relations
Published: 10:01, 22 May 2015
The total cost of the Paramount entertainment resort is set to reach £3.2 billion as developers pay out consultancy fees on traffic handling measures and public relations.
London Resort Company Holdings (LRCH), the firm which hopes to build the tourist attraction, had previously indicated the scheme would cost £2 billion but said the higher figure had been anticipated “from the outset”.
The cost has been put down to payments made to firms which have contributed to the various public consultations, the latest of which is still ongoing.
Developers say the construction cost of building the resort on the Swanscombe Peninsula between Gravesend and Dartford stands at about at about £2.6 billion.
Kleinwort Benson Bank, a London-based private banking and corporate advice institution, has been appointed to oversee the fundraising and manage the scheme’s debts.
The proposals, which LRCH say will create 27,000 jobs, have been funded so far by Kuwaiti European Holdings (KEH), the Middle Eastern owners of Ebbsfleet United Football Club, which is backed by the Al-Humaidi family.
The investment company has committed to fund the project through to the end of the planning phase, with permission expected to be granted by the Communities Secretary – currently Tunbridge Wells MP Greg Clark – at the end of next year.
Sources close to the project said the difference is in consultancy fees for traffic measures and things like the exhibition boards which people have seen in the consultation.
London Paramount executive director David Testa said: "Our capital expenditure for, amongst others, the infrastructure, hotels, rides and attractions at London Paramount is approximately £2.6bn in total, with the balance up to £3.2bn being a prudent provision for working capital."
Should it be approved, the resort is expected to open by Easter 2020.
LRCH is led by chairman Steve Norris, former transport minister, London Mayor candidate and ex vice-chairman of the Conservative Party.
The resort will feature a theme park with rides based on films and shows from Paramount Pictures, BBC and Aardman Animations.
The latest public consultation runs until June 5. Details at www.londonparamount.info.
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Chris Price