Redrow, M.J. Gleeson Sign U.K. Fire-Safety Pledge

By Joe Hoppe

Redrow PLC and M.J. Gleeson PLC both said Wednesday that they have signed up to the U.K. government's fire-safety pledge, with the former expecting to make an additional provision of 164 million pounds ($214.4 million).

The house builders said they have signed the pledge following industry discussions with the Department for Levelling Up, Housing and Communities.

The pledge sets out the industry's commitment to removing cladding and remediating fire-safety issues in buildings higher than 11 meters following investigations into London's 2017 Grenfell Tower fire disaster, which killed 72 people.

Redrow said its existing provision for fire safety in high rise buildings is GBP36 million, and it expects an additional GBP164 million will be required, though it will pursue recoveries from main contractors, warranty providers and other third parties.

Gleeson said it wasn't aware of any material fire-safety issues for the 15 buildings over 11 meters it was historically involved in, but it will undertake an assessment, which it expects to conclude by the end of June.

Taylor Wimpey PLC, Crest Nicholson Holdings PLC, Persimmon PLC and Berkeley Group Holdings PLC also said they have signed the pledge. Taylor Wimpey said it expects a further provision of around GBP80 million, Crest Nicholson said it expected a liability of up to GBP120 million, Persimmon said it expects its existing provisions to cover the bill and Berkeley didn't provide any financial details.

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(END) Dow Jones Newswires

April 06, 2022 02:43 ET (06:43 GMT)

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