The firm took a 25% stake in GB Group when a management buy-out bought out Gleeson’s contracting business to set up the independent building firm.
Gleeson bought the stake in 2005 to facilitate the management buyout.
Jolyon Harrison, Chief Executive Officer, said: “Any subsequent write down will be recorded as an exceptional, non-cash, item in the Group’s results for the current year ending 30 June 2015.”
It also emerged today that GB Building had approached Gleeson to throw it a lifeline by buying its major Leeds hotel, which is nearing completion.
But the firms failed to agree terms for the project, which was being developed by GB Group for the Hilton Group.
GB Group said in October it had secured public and private sector funding for the £32m exclusive hotel development next to the Leeds Arena last year.
The group’s building arm is around three-quarters of the way through the £21m contract for the landmark 14-storey hotel.