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Developer Chelsfield has been exposed to a legal action for fees by Savills after an invoice was allegedly misplaced during Chelsfield’s £2.1bn takeover last year.
Savills claims that it is owed £100,000 for consultancy work undertaken on an office development in London’s South Bank. It launched the lawsuit after invoicing Chelsfield once planning consent had been granted for the scheme in September 2004.
However, Multiplex, which led Chelsfield’s buyout along with Australian shopping-centre giant Westfield and the Rueben brothers, says that the action may be due to “confusion” caused by the transfer of ownership.
A Multiplex spokesperson said: “Documents may have been lost in the transfer of ownership. We are meeting with Savills to settle the claim, and if it is clear that there is a fee owing, then we will honour it.”
According to the High Court claim, Chelsfield owed Savills for negotiations on a lease and a rights-to-light agreement, and for advice given during the design process for the 28,000 sq ft office development at Union Works, 60 Park Street, London SE1.
Savills claims that Chelsfield contracted to pay £60,000 upon completion of the lease, and a separate fee calculated on the amount of net floorspace permitted by the planning consent.
Although Chelsfield paid the first tranche, it has allegedly failed to pay a subsequent £98,650 invoice.
Savills declined to comment.
References: EGi Legal News 02/08/05
