A three-year battle over the redevelopment of Marconi House at 336-337 Strand, WC1, came to an end this week as Spanish hotelier Grupo Urvasco lost a £72m claim.
The hotelier had in 2010 sued Carey Value Added, a Spanish fund which invests in hotels, for failing to advance funding under a loan agreement relating to the development of the 170-bedroom scheme.
It claimed this led to the project failing and the site ultimately falling into the hands of Spanish rival Sol Melia, which opened the hotel ME there earlier this year.
However, Judge Blair this week dismissed the claim and upheld a counterclaim by Carey for repayment of €65.4m (£55.4m), which became due in January this year.
Grupo Urvasco had approached Carey for funding for the hotel project in 2007 and €55m was advanced to the developer.
But in 2008 a series of disputes arose between the parties and work on site ceased.
Principal lender BBVA then appointed LPA receivers to the project after a circa €30m payment was missed.
Grupo Urvasco blamed the missed payment on Carey “cynically and deliberately starving it of cash” and launched its action.
jess.harold@estates.gazette.com
