News

Golfrate subsidiary appeals ‘most hated’ building defeat

News

Christian Metcalfe

19 April 2007

Leisure, Offices, Residential

A subsidiary of Asif Aziz’s Golfrate Holdings is appealing the High Court defeat of its bid to avoid a contract for the sale of London’s “most hated” building.

Brown & Root tower, Colliers Wood

Yewbelle is challenging the refusal of its application for a declaration that the sale contract for the Brown & Root tower in Colliers Wood, SW19 had come to an end because it had failed to conclude a section 106 agreement with Merton council.

The Court of Appeal is considering Lewison J’s finding that despite demands by the council which were “a bolt from the blue” Yewbelle had not used “all reasonable endeavours” to secure the agreement and therefore could not avoid the sale contract.

Yewbelle is arguing that it had used all reasonable endeavours to secure the agreement but it had no substantial prospect of doing so within a reasonable time.

In March 2004, permission was granted for the re-development of the site to provide 226 residential units, 3,982 sq ft of retail space, 6,770 sq ft for a new public library and 9,429 sq ft of office space – subject to a section 106 agreement.

Buyers were sought for the site and, in April 2005, an offer of £13.75m was accepted on the condition that the buyer’s obligation to complete was deferred until a completed section 106 agreement was arranged.

However, Merton council made further demands including a £1.4m library fit out and the requirement that occupation of the residential units depended on the grant of a lease of the library to Merton at a peppercorn rent.

It also became apparent, in December 2005, that part of the land needed for the development was owned by British Land subsidiary Pillar Retail Parks and accordingly Pillar would also have to sign up to the section 106 agreement.

Yewbelle therefore sought to terminate the sale agreement as it was unable to arrange the section 106 agreement.

The buyer did not accept that and sought “specific performance” of the sale contract, an application which Lewison J granted.

The hearing is expected to last two days.

The Brown & Root tower, a 17-storey 1960s office building, received more than half the votes in a 2006 BBC poll to find London’s “most hated” building.

A subsidiary of Asif Aziz’s Golfrate Holdings is appealing the High Court defeat of its bid to avoid a contract for the sale of London’s “most hated” building. Yewbelle is challenging the refusal of its application for a declaration that the sale contract for the Brown & Root tower in Colliers Wood, SW19 had come to an end because it had failed to conclude a section 106 agreement with Merton council. The Court of Appeal is considering Lewison J’s finding that despite demands by the council which were “a bolt from the blue” Yewbelle had not used “all reasonable endeavours” to secure the agreement and therefore could not avoid the sale contract. Yewbelle is arguing that it had used all reasonable endeavours to secure the agreement but it had no substantial prospect of doing so within a reasonable time. In March 2004, permission was granted for the re-development of the site to provide 226 residential units, 3,982 sq ft of retail space, 6,770 sq ft for a new public library and 9,429 sq ft of office space – subject to a section 106 agreement. Buyers were sought for the site and, in April 2005, an offer of £13.75m was accepted on the condition that the buyer’s obligation to complete was deferred until a completed section 106 agreement was arranged. However, Merton council made further demands including a £1.4m library fit out and the requirement that occupation of the residential units depended on the grant of a lease of the library to Merton at a peppercorn rent. It also became apparent, in December 2005, that part of the land needed for the development was owned by British Land subsidiary Pillar Retail Parks and accordingly Pillar would also have to sign up to the section 106 agreement. Yewbelle therefore sought to terminate the sale agreement as it was unable to arrange the section 106 agreement. The buyer did not accept that and sought “specific performance” of the sale contract, an application which Lewison J granted. The hearing is expected to last two days. The Brown & Root tower, a 17-storey 1960s office building, received more than half the votes in a 2006 BBC poll to find London’s “most hated” building.