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Reubens sue over Paddington flats



The Reuben brothers and Bruce Jarvis are suing the manager of four apartment blocks on their Paddington Basin estate in west London for more than half a million pounds.



 


The trio’s European Land & Property has launched the high court action against a property management company set up by Rialto Homes after it developed the 460 flats at West End Quay, W2, in 2000.



 


The row centres on £599,881 in alleged unpaid service charges, which European Land claims should have been paid by West End Quay Estate Management over the past two years. It is also claiming £54,810 in interest on that amount.



 


WEQ is defending the claim. No one at Rialto Homes was available for comment.



 


Rialto took on the development project after the last recession. In 1997, with Frogmore, it paid Paddington Basin’s then owners, Chelsfield and Bruce Jarvis, £20m for a 2-acre site.



 


Frogmore agreed that it would remain liable for contributions towards the substantial estate management charges for the entire scheme.



 


Three years later, it sold its interest to a Rialto-led consortium, including West City Properties, ING and Wates.



 


The Reuben brothers became involved in Paddington Basin in 2004, when they bought out Chelsfield’s 50% stake.



 


In 2005, a company called Paddington Basin Management was set up to provide estate services. But, according to the claim, WEQ has failed to pay it the necessary charges for the flats in 2006 and 2007.



 


A statement issued on behalf of Paddington Basin Management said: “Paddington Basin Management has an agreement with West End Quay Estate Management to provide services (eg security, cleaning, lighting, etc) on the Paddington Basin estate for the benefit of the 460-plus residential tenants of the West End Quay luxury flats, managed by WEQ.



 


“WEQ have disputed their and the residential tenants’ liability for the cost of these services, and the arrears now amount to about £600,000. At the end of February 2008 PBM commenced high court proceedings against WEQ.”


 


christian.metcalfe@rbi.co.uk


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