Developer Chelsfield has been exposed to a legal action for fees by Savills after an invoice was allegedly misplaced during Chelfield’s £2.1bn takeover last year.
Savills claims that it is owed £100,000 for consultancy work undertaken on an office development at London’s South Bank.
It launched the lawsuit after invoicing Chelsfield once planning consent had been granted for the scheme in September.
However, Multiplex, which led Chelsfield’s buyout along with Australian shopping centre giant Westfield and the Rueben brothers, says the action may be due to “confusion” caused by the transfer of ownership.
A Multiplex spokesperson said: “Documents may have been lost in the transfer of ownership.
“We are meeting with Savills to settle the claim, and if it is clear there is a fee owed, then we will honour it.”
According to the High Court claim, Chelsfield owed Savills for negotiations on a lease and a rights-to-light agreement, and for advice given during the design process for the 28,000 sq ft office development at Union Works, 60 Park Street, SE1.
Savills claims that Chelfield contracted to pay £60,000 upon completion of the lease, and a separate fee calculated on the amount of net floor space permitted by the planning consent.
Although Chelsfield paid the first tranche, it has allegedly failed to pay a subsequent £98,650 invoice.
Savills declined to comment.
References: EGi News 02/08/05
