Christian Candy’s CPC Group has lost its appeal to cut a £15m affordable housing obligation on the Sugar Quay, EC3, residential scheme in the City of London.
CPC acquired Tate & Lyle’s former HQ on the north bank of the Thames in March 2012 from administrators at KPMG for £34m and intended to turn the office block into 165 luxury flats ranging in size from studio to three-bedroom.
Under section 106 terms, the company was required to provide a £15m affordable housing contribution but earlier this year it launched a bid to cut the obligation to £11.2m.
A decision letter from planning inspector Ava Wood, issued last week, recorded that CPC submitted a viability assessment to the City of London Corporation in February 2014 to demonstrate that the scheme could not afford to make any additional affordable housing payment beyond an initial £7.5m instalment.
The letter said that the developer had then applied to the Corporation to adjust the affordable housing agreement to £11.2m but the Corporation insisted on the full £15m, sparking the appeal.
Inspector Wood concluded the development was viable with the current affordable housing requirement in place, saying: “Overall, my conclusion is that the scheme is capable of bearing the cost of the affordable housing contribution offered by the current obligation.
“There is no need therefore to consider whether modifications to the obligation are necessary to make the project viable.”
A City of London Corporation spokesman said: “We are delighted the planning inspector has upheld our view that the Sugar Quay development should pay its full affordable housing contribution.
“Affordable housing is one of the key issues facing London today and is an important factor in maintaining London’s position as a diverse, global centre for business and culture.”
