Firmdale Hotels owner Tim Kemp has become embroiled in a battle for control of a property adjoining his proposed £90m hotel at Ham Yard, W1.
The former owner of 33 Great Windmill Street, W1, has filed a high court claim seeking to dismiss its sale to Kemp’s Covent Garden Hotel Ltd.
Luxembourg-based Leconfield alleges that the sale, made by a business of which Kemp had taken control, was not genuine. Kemp denies the allegation.
In July 2007, Leconfield used 33 Great Windmill Street as security for a £1.3m loan from London & Newcastle (Soho) to Windmill Developments, the then-owner of Ham Yard.
However, Windmill defaulted on the loan and went into liquidation. L&N later appointed receivers to sell the property at a 24 March 2010 auction.
The writ alleges that Kemp saw that the property was key to an “enhanced and enlarged” development of Ham Yard, bought out L&N prior to the auction, then sold the property to his firm CGH for £1.1m. Leconfield claims that the figure is “a substantial undervaluation”.
Kemp said: “The mortgagor obtained two independent valuations from top-flight, large, West End firms confirming a valuation in each case of less than the amount paid for the freehold building.
“There is absolutely no evidence that the building is worth any more than the amount paid. This action would appear to be without merit.”
christian.metcalfe@estatesgazette.com
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