Lend Lease Corporation, which half-owns Sydney's Fox Studios Australia, has made a provision of $47m (A$80m) after tax to cover its losses from the failure of the 19-month-old Backlot, one of three distinct parts of the studio and entertainment development. It will also make an appropriate write-down of the value of the investment.
The company signalled such a move in March but announced to the Australian Stock Exchange today that: "the Backlot has continued to trade well below budget" and "it is prudent to make a significantly larger provision than first anticipated".
The Backlot was intended as an area for families to immerse themselves in how film and television is created. A Fox Studios spokesman said there would be no backing away from this plan but it is yet to be fully realised.
The other two areas of the studios - the Bent Street entertainment and retail area and the professional studios - are performing well. Bent Street is attracting about 100,000 people per week and the studios are currently housing production on the next two Star Wars features.