CLS Holdings is playing down a legal dispute between members of the consortium behind plans for London’s tallest tower, the 1,016 ft-tall “Shard of Glass”.
In a statement issued this morning, CLS said the dispute had “no bearing whatsoever” on the development.
The Anglo-Swedish developer has been working up plans for the tower next to London Bridge station with Irvine Sellar’s Sellar Property Group and Syrian-born investor Simon Halabi.
Halabi is understood to have issued legal proceedings in the Royal Court in Jersey against his partners in the Teighmore consortium , claiming his stake in the project has been wrongfully reduced.
Sellar and CLS deny the allegations and have counter-claimed alleging “fraudulent misstatement”.
They claim that Halabi misrepresented the involvement of his backers to gain a greater stake, an allegation denied by Halabi.
This morning CLS played down the row, saying the dispute concerned the validity of the sale of some Teighmore non-voting shares, which constituted a small part of the issued share capital.
It said progress at the development was “most encouraging” and discussions are in hand with a number of “interested tenants and funders” whilst preparations for construction were in the final stages.
It said its share of the value of the scheme known officially as London Bridge Tower – is £18.3m, compared to a total CLS property portfolio valuation in excess of £1bn.
Barry Ostle, head of property at Sellar, refused to comment on the wrangle but said it would “not affect the project in any way”.
The parties are in talks to resolve the dispute in an out-of-court settlement before it returns to court at the end of the month.
References: EGi News 15/11/05
