107 Cheapside dispute opens
Legal
by
Christian Metcalfe
The dispute concerning Menolly Investments’ £150m purchase of 107 Cheapside, London EC2, is being heard in the High Court.
Warren J will hear extensive witness evidence and legal submissions from Menolly and the seller of the 184,000 sq ft speculative office scheme, US private equity firm Carlyle Group. The case is expected to last three days.
The dispute concerning Menolly Investments’ £150m purchase of 107 Cheapside, London EC2, is being heard in the High Court.
Warren J will hear extensive witness evidence and legal submissions from Menolly and the seller of the 184,000 sq ft speculative office scheme, US private equity firm Carlyle Group. The case is expected to last three days.
The dispute began last monthmwhen Menolly filed a legal claim to stop Carlyle’s investment vehicle CEREP SARL from relying upon a disputed certificate of practical completion, which was issued by GVA Grimley’s Second London Wall project-anagement subsidiary, to effect completion of the purchase.
Menolly, a wholly-owned commercial property subsidiary of Irish developer Menolly Group, wants to delay the deal because it claims that the building has not reached practical completion and is worried that it will be unable to obtain insurance for the building in its current condition.
The judge will also rule on a legal claim issued by CEREP for a declaration that subsequent certificates of practical completion had remedied the alleged defects in the original certificate.
CEREP, which has instructed David Freidman QC and Anthony Trace QC, alleges that the Menolly claim was a “last gasp attempt” to avoid completion of the deal.
The case continues.
