Chelsea Barracks’ developer acted in ‘good faith’ with withdrawal
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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.
7 July 10
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