Council serves notice on Heron Quays tenants

By John Hill on May 22, 2009 10:30 AM |

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Tower Hamlets Council is pushing ahead with plans to force Heron Quays long leaseholders to sell up.

Compulsory purchase orders were displayed around the "red sheds" this month in a bid to make way for Canary Wharf Group's Heron Quays West scheme.

CWG wishes to build a three-tower development, which will feature space for 7,960 office workers and an on-site training centre.

The council agreed to use its CPO powers last May after CWG complained that long leaseholders Leeside International and Michael Hunt "were frustrating the delivery of the scheme" by refusing to sell at a reasonable price.

Leeside International's Michael Gross countered that no offer had been made since the end of 2006, and he had initially been told that the scheme would be built around his site.

Speaking to The Wharf on the night of the decision, Mr Gross said: "I'm quite happy to sell my land, but I'm not willing to have it taken from me."

It is understood that the company's bid for a judicial review has not been granted, but the council has stated "there is no realistic prospect of acquiring the long leasehold interests by agreement on acceptable terms or within a reasonable timescale".

In the council's statement of reasons for the CPO, it says that the scheme would secure "economic benefits for the council's area and the city as a whole". This includes the relocation of the current Skillsmatch training centre on site plus a £5million ring-fenced endowment.

It said: "Compulsory purchase of land is intended as a last resort in the event that attempts to acquire by agreement fail, but the guidance encourages acquiring authorities to initiate the formal CPO procedures in parallel with negotiations.

"Accordingly, the council and the developer intend to continue to pursue a twin track approach of negotiation alongside the CPO process."