Goldman Sachs has reached an eleventh-hour deal over the rights of light claims launched against its proposed £800m City HQ, EC4.
The US investment bank has settled disputes with UK pension fund managers Aberdeen and Royal London, averting a potential intervention by the City of London Corporation.
City planning officer Annie Hampson had recommended the Corporation use section 237 of the Planning Act to intervene in the dispute after the parties had failed to reach agreement.
Under Section 237 the City would effectively buy a temporary stake in the project, thereby giving it immunity from infringing rights of light.
Crucially, the compensation due in such circumstances is based on the loss of value to a development’s neighbours rather than a profit share.
Aberdeen and Royal London had been seeking a profit-share agreement equating to around £2.5m.
An independent valuation by the City put the amount of compensation due at £1.2m, a figure Goldman offered to match.
While the final terms of the settlement are confidential, the bank is understood to have agreed a figure in excess of £2m.
