The owners of the £400m Vauxhall Cross development site next to Vauxhall Tube station, SW8, are being sued for as much as £12m.
Tempest, a client of Mishcon de Reya, claims that it entered into a profit-share agreement with one of the funders of the site, special purpose vehicle Kylun, in 2009 and is therefore entitled to proceeds from any sale or development of the residential project.
Wendover Investments and Kylun put the site up for sale through Knight Frank last month and expect to receive in excess of £65m.
A spokesman for Mishcon de Reya said: “Tempest has not been bought out of this agreement and maintains that the terms of the agreement will be satisfied upon sale of the site.
“Tempest, therefore, seeks declarations that it is entitled to equitable compensation and to be paid by the site’s owners for any payment received from the sale or development of the site, as well as damages from Kylun and others for breach of contract and breach of fiduciary duties.”
Vauxhall Cross has consent for a 627,000 sq ft mixed-use scheme, designed by Squire & Partners and comprising 291 flats in two towers and a 107,400 sq ft hotel.
