Sultan legal action halts £250m Rochdale scheme

Property developer Sultan Properties is trying to stop Rochdale Council from signing an agreement with Wilson Bowden for the £250m regeneration of Rochdale town centre. The developer is seeking an injunction because it believes that the council had “failed to comply with important EU rules requiring a fair, open and transparent competition” between bidders. Chief executive Eamonn McCann wants the council to undertake a full resubmission of all the shortlisted developers’ proposals. His complaint centres around the town’s Marks & Spencer store, which Sultan had proposed to keep at its Yorkshire Street location. Wilson Bowden, however, planned to move the retailer into its new town-centre scheme. McCann claims that the council misunderstood its proposals and failed to give Sultan Properties a fair hearing. Andy Zuntz, executive director at the council, said the local authority was “disappointed” by Sultan’s claims and that it “strongly contested” any suggestion that it had breached EU rules. English Partnerships, which was involved in the selection process, said that it backed the council’s “rigorous and detailed” procedures. The action is being brought solely by Sultan, which has instructed Addleshaw Goddard to act on its behalf.