Knight Frank has been accused of acting “unprofessionally and unethically” in a formal complaint to the RICS.
The complaint was made by an underbidder on a small residential redevelopment site in Hampstead, NW3.
The sale of 27 Fitzjohns Avenue, NW3, owned by Hampstead-based charity the Westminster Society for People with Learning Disabilities, has now been suspended.
Kythira Investments sent formal complaints to Knight Frank, the agent on the sale, the RICS and the Charity Commission in which it alleged that Knight Franks Hampstead office “acted in an unprofessional, unethical and wholly improper manner unbefitting a company of its apparent reputation and standing”.
The letter, from Kythiras managing director, Christos Tsentas, claims that the agent gave details of the sealed bids from Kythira and local developer Dreamgate Properties to a rival bidder, a Mrs Fiorentino.
It claims Fiorentino trumped Kythiras £2.76m top offer by £1,500 after the midday deadline for final bids on 24 October.
Kythira claimed that Knight Frank had totally contravened the principle of sealed bids and had “breached the rules and procedures” of sections 36 to 40 of the Charities Act by allowing the ultimate buyer to put in a final bid after the deadline.
But Nick Thomlinson, head of residential at Knight Frank, said the firm had fully complied with the Act.
“We completely refute the accusations. The allegations are scurrilous,” said Thomlinson.
“If every disgruntled underbidder complained the whole thing would end in chaos. Thankfully it doesnt happen too often. Most people accept it with good grace.”
The RICS said it was unable to comment on the wrangle until it had processed the complaint.
A spokesman said it was unusual to receive a complaint from an underbidder.
He added: “The matter will of course be taken very seriously.”
EGi News 11/11/02
