The Howard de Walden Estate has issued a tie-up or pay-up ultimatum to the preferred bidder on a car park controversially taken off its hands almost 50 years ago.
The West End landlord this week decided not to pursue its threat of a judicial review into Westminster city council’s sale of the 0.83-acre Moxon Street car park, W1, to Ridgeford Properties backed by Concord Pacific. Instead it has called Ridgeford to the negotiating table to thrash out a potential opportunity for it to partner on the niche residential developer’s £250m scheme.
Sources said the threat of right to light compensation was being used as a bargaining tool by Howard de Walden to force its way onto the Marylebone development.
The estate believes it would be owed around £30m in compensation, but Ridgeford argues the claim would be less than £10m, according to West End sources.
One said: “Howard de Walden has made no secret of its long desire to develop the site. The estate now wants a joint venture, rather than compensation.”
Howard de Walden had set a deadline of 14 January to file for a judicial review.
The car park is currently used as a farmers’ market. It was bought by the now-abolished Greater London council using compulsory purchase powers from the Howard de Walden Estate in 1966.
Westminster city council is likely to back a jv partnership to avoid a major right to light legal fight. It said it was working with interested parties to unlock the potential of the site.
Meanwhile, Westminster is entertaining proposals for part of the redevelopment to be used by the Marylebone Boys Free School, in lieu of an affordable housing payment.
Mayor of London Boris Johnson has written to the council proposing the site be used for a school.
All parties declined to comment.
Moxon Street car park: 50 years a development site
1966 London county council issues CPO to Howard de Walden Estate to buy Moxon Street car park for educational use
1991 Site transferred to Westminster council with covenant it cannot be sold before August 2011 without government approval
2009 Council identifies car park as opportunity area with particular scope for housing and community uses
2012 Jones Lang LaSalle and Lambert Smith Hampton instructed to sell the 0.83-acre site for in excess of £60m
2013 Ridgeford Properties’ and Concord Pacific’s £250m vision chosen as winning bid for the site
joanna.bourke@estatesgazette.com
