Chelsea Barracks’ developer acted in ‘good faith’ with withdrawal

A
judge has ruled that the withdrawal of the planning application for the
redevelopment of the Chelsea Barracks
into a hotel, with meeting facilities
and housing complex was in breach of contract.

However, the developer Qatari Diar, was not liable for the £68.5m
compensation its development partner,
CPC Group, was requesting as it acted in “good faith”, said Justive Vos.

The
development plans, which were due to
be sent to the Westminster Council for approval at the time of its withdrawal in June 2009, included a 90-room
hotel equipped with a health spa, restaurant, brassiere and bar, and
meeting facilities of use to existing
and future local residents, a medical
and sports centre and 548 apartments
in 17 blocks.

Qatari
Diar claims it withdrew its proposal due to pressure from the Prince of Wales,
who intervened in March 2009 with a letter to Sheikh Hamad bin Jassim bin Jabr
Al-Thani saying his heart sank at seeing the architect Lord Rogers’ modernist
plans.

Justice Vos said both parties were faced with a “very difficult
position once the Prince of Wales intervened in the planning process in March
2009”.

The
developer said there were indications the plans would be rejected by Westminster council or the
Mayor of London. 

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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