The consortium behind the £500m regeneration of the Whitechapel Estate, E1, has launched a search for a development partner after parting ways with Regal Homes.
London developer Regal was expected to manage the 750,000 sq ft scheme on behalf of the Royal Hospital Consortium led by GreenOak Real Estate. A masterplan worked up by SCR Architects and Tower Hamlets council proposes as many as 550 homes as well as shops, offices and a hotel.
However, following completion of the acquisition from Barts and the London Charity, the parties are understood to have failed to agree the basis of liability under the development programme, prompting Regal to exit the consortium.
GreenOak is now understood to have begun sounding out rival developers. Exemplar, Londonewcastle and Stanhope are among those thought to have been approached regarding a development management role.
A source said: “This is a similar situation to St John’s Wood Barracks, when London Square got itself in pole position but the money changed its mind.
“It is unfortunate for Regal, which put a lot of time and money into this project.”
GreenOak, the property vehicle established in 2010 by a trio of former Morgan Stanley Real Estate Investment executives, bought the estate for more than £50m in January as part of a consortium including Ong Beng Seng’s HPL Group and Regal Homes (26 January, p31).
The gross development value could easily exceed £500m, with residential prices in the area expected to soar thanks to the nearby Crossrail station.
The site includes 14 existing buildings of predominantly residential use, a handful of which are Grade II listed Georgian townhouses, which SCR proposes refurbishing.
A Regal Homes spokesman confirmed the company was no longer involved in the project but declined to comment further.
GreenOak also declined to comment.
jack.sidders@estatesgazette.com
