Irvine Sellar has responded to rumours of a row between the partners behind London’s Shard of Glass project calling the reports “inaccurate”.
Sellar would not confirm where the inaccuracies lay in the reports that property tycoon Simon Halabi is incensed that partners Sellar and CLS are trying to charge him £28m for “project management” fees on the Shard and a neighbouring office block.
He confirmed the party were using an “internal arrangement where majority rules” which avoids any court procedure.
“It is an internal mechanism in place to deal with any problems that arise to avoid distracting from the project which is on track.”
He added: “There will always be difference where a number of people are involved.”
One year ago the group was embroiled in a dispute when Halibi alleged the other two partners had watered down his stake in the London Bridge scheme.
The conflict was resolved and it is thought this prompted an agreement over the arbitration system currently in place.
Work on the Renzo Piano-designed Shard – set to be the UK’s tallest tower is due to begin this year.
The consortium secured a £196m facility with Nationwide Building Society and Kaupthing Singer & Friedlander to finance the initial construction phase of the development in September last year.
This deal followed the preletting of 190,000 sq ft of offices over the lower floors of the tower to Transport for London (TfL).
Shangri-La Hotels and Resorts have also prelet the 200,000 sq ft hotel element of the scheme on a 30-year lease.
Plans for the 1,016ft tower include a public viewing gallery on the 72nd floor and flats on its upper floors.
References: EGi News 12/01/07
