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LCR Terminates Contract for $7B-Plus Olympic City
By Anita Howarth
(For more retail coverage, click GlobeSt.com/RETAIL.)
LONDON-London & Continental has started termination proceedings with the consortium selected to develop the euro 5.9-billion ($7.5-billion) Stratford City project--a key part of London’s Olympic plans. L&C's lawyers issued a notice to end its contract with Stratford City Developments, which is owned by Stanhope, Westfield, Multiplex and the Reubens' Aldersgate, indicating that it has "little faith" that the shareholders would settle their differences.
They have allowed a six-week remedial period that gives the parties a last attempt to resolve their differences and ensure that one wins the development rights. A remedial period is a standard procedure in any termination notice. L&C has appointed Jones Lang LaSalle and UBS to find a development partner for the project.
"We are no longer hopeful that the auction process could be brought to a successful conclusion," says Stephen Jordan, managing director at L&C. "It is in the project's best interests that we now begin the process to terminate the contract."
But Westfield and the Reuben brothers believe they are close to arranging an auction to settle who will win the rights to develop the 180-acre key Olympic site. Talks have been overseen by mediator Robert Leitao at NM Rothschild but have missed several self-imposed deadlines. London & Continental has not decided whether to appoint more than one developer for the different parts of the scheme.
Westfield or the Reuben brothers would both need to bring in partners. They need to be on site by the middle of next year to safeguard the 2012 Olympics. The Reuben brothers, through Aldersgate, own 50% of the Stratford City Developments, Westfield has a 25% stake and Stanhope and Sir Stuart Lipton own a 25% stake that they will sell to the auction winner.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
LCR Terminates Contract for $7B-Plus Olympic City
By Anita Howarth
(For more retail coverage, click GlobeSt.com/RETAIL.)
LONDON-London & Continental has started termination proceedings with the consortium selected to develop the euro 5.9-billion ($7.5-billion) Stratford City project--a key part of London’s Olympic plans. L&C's lawyers issued a notice to end its contract with Stratford City Developments, which is owned by Stanhope, Westfield, Multiplex and the Reubens' Aldersgate, indicating that it has "little faith" that the shareholders would settle their differences.
They have allowed a six-week remedial period that gives the parties a last attempt to resolve their differences and ensure that one wins the development rights. A remedial period is a standard procedure in any termination notice. L&C has appointed Jones Lang LaSalle and UBS to find a development partner for the project.
"We are no longer hopeful that the auction process could be brought to a successful conclusion," says Stephen Jordan, managing director at L&C. "It is in the project's best interests that we now begin the process to terminate the contract."
But Westfield and the Reuben brothers believe they are close to arranging an auction to settle who will win the rights to develop the 180-acre key Olympic site. Talks have been overseen by mediator Robert Leitao at NM Rothschild but have missed several self-imposed deadlines. London & Continental has not decided whether to appoint more than one developer for the different parts of the scheme.
Westfield or the Reuben brothers would both need to bring in partners. They need to be on site by the middle of next year to safeguard the 2012 Olympics. The Reuben brothers, through Aldersgate, own 50% of the Stratford City Developments, Westfield has a 25% stake and Stanhope and Sir Stuart Lipton own a 25% stake that they will sell to the auction winner.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
posted by Jones Lang LaSalle NJ News Blog at 11:36 AM
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