Frogmore Estates is being forced to spend millions of pounds on rectifying problems at its luxury Hampstead residential development.
Last year, before the company’s MBO, £13.4m was put aside for “the estimated costs of rectification” at Inverforth House. Paul White, chief executive, denied claims that the figure had nearly doubled but said costs were “many millions more than the figure quoted in the offer document”.
Inverforth House, a grade II listed former hospital converted in 1996, has been plagued by construction, mechanical, electrical and design problems. So serious are the problems, that Frogmore has had to relocate the residents of all nine of the apartments, which range in price between £1m and £4m.
Paul Isaacs, Frogmore’s residential director, confirmed the company is looking at legal action against the contractors. “It is the subject of potential serious litigation. We’re considering who we’ve got actions against, for what and for how much,” he said.
The scheme was developed by Pamlion Properties and Mace was the construction manager.
EGi News 13/11/01
