A fourth Southern Cross subsidiary is facing high court proceedings, this time over the allegedly unlawful subletting of central London offices. (4th, other stories?)
BCN Corporation is being sued by Dhow Property Co for “unlawfully parting with possession or subletting” premises at 8 Upper Grosvenor Street, W1. The landlord is also seeking £17,000 in unpaid rent.
David Horsfall, a partner at Southern Cross’s solicitor Layard Horsfall, said: “In the fast-moving property world you are bound to get disputes. The disputes have now multiplied due to Southern Cross being in financial difficulties.”
Southern Cross recently settled an action by German fund manager Deka Immobilien for unpaid rent on CVK Estates’ Wardour Street offices, and a claim by Coal Pension Properties that Hilton Properties had unlawfully shared its Cavendish Square offices.
The property manager has also been involved in a dispute with Trinity Mirror over the sublease of a building in Buckingham Street, W1.
In the latest claim, Dhow alleges that BCN allowed another company to occupy three business floors and the residential units at the Upper Grosvenor Street property in breach of its 10-year underlease.
Horsfall said that Southern Cross was negotiating “to remedy the situation” before the court hearing. He also claimed that Dhow was wrongly seeking full rent for a period when the underlease had specified a half-rent.
Dhow’s solicitor, Simon Freeman of Wedlake Bell, refused to comment.
