Developers are pulling out of the opportunity to buy the £500m Arcadia development site in Ealing, W5, because of the administrator’s refusal to budge on pricing.
Grant Thornton, which is handling the administration of the site’s former owner, Glenkerrin, is keen to secure at least £40m for the 4.2-acre west London site and has threatened to sell the properties piecemeal if that level is not met. It believes selling the assets individually would raise more funds for Nama, Glenkerrin’s creditor.
The move has created a rift with Ealing council, which wants the site to be redeveloped as a mixed-use scheme comprising 500 homes and 200,000 sq ft of commercial development. The council said it would issue a compulsory purchase order of the properties if necessary.
Sellar Property has abandoned its bid and several other bidders are expected to follow. Land Securities and Resolution Property have been asked to resubmit higher bids.
Sources said the price sought by Grant Thornton did not reflect the development risk.
“This is a massive project and developers want to buy the land cheap to ensure profitability,” said one. “There are a number of risk factors, including securing finance and having to redevelop and bulldoze such a large site.”
joanna.bourke@estatesgazette.com
