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Financial rescue plan for olympic 2012 athlete’s village close to being clinched

The main developer Lend Lease has struggled due to the global economic downturn to raise finance for the £1 billion project. Initial works are being funded by the UK taxpayer after the government had no choice but to bail out the development.

But now a housing association is ready to join the consortium and effectively rescue the project. The Olympic Delivery Authority confirmed that Southern Housing Group has agreed in principle to help Lend Lease on the 2012 project.

If a full deal is signed, Southern will join the existing developers Lend Lease, First Base, and East Thames Group who are currently working on the project.

'The Southern Housing Group has reached an in-principle decision with First Base and East Thames about joining the consortium for the provision of the affordable housing elements of the Olympic village development,' and ODA spokesman said.

He added that the deal will have to gain regulatory approval and the approval of Southern Housing Group's board.

'Discussions over the long-term financing of the Olympic village will continue into the New Year and, in the meantime, construction work on site is making strong progress so the project is firmly on track,' the spokesman added.