Heron Quays occupants want inquiry into forced sale
Long leaseholders want a public inquiry into the bid to kick them off land at Heron Quays.
Leeside International and Michael John Hunt have written to the Secretary of State for Communities and Local Government, claiming the move is "premature" and could "jeopardise" jobs in the area.
Tower Hamlets Council began issuing compulsory purchase notices last month to clear the way for Canary Wharf Group's three-tower Heron Quays West scheme.
This move has angered both leaseholders, who claim the land could lie empty while CWG waits for interest to emerge.
In letters sent through Knight Frank, they said: "The acquiring authority has not shown that in current and foreseeable market conditions there is sufficient demand to ensure that the scheme will proceed to completion, either at all or in a reasonably foreseeable timescale.
"The scheme is not viable and there is a very large supply of available land for office development in the Canary Wharf area already.
"The compulsory purchase of the order lands would jeopardise the existing employment on Heron Quays. These jobs may not be replaced without the certainty of the scheme proceeding."
The council stepped in last May after CWG complained the leaseholders were refusing to sell their 200-year interests at a "reasonable" price. The objectors unsuccessfully called for a judicial review earlier this year.
Leeside and Mr Hunt argue the dispute cannot be "satisfactorily dealt with by compensation", but have left the door open for a development agreement.
The letters accuse the council and CWG of showing "bias" in negotiations, and describe CWG's £5million contribution towards a Skillsmatch training centre as "an inducement" to encourage "misuse" of the council's compulsory purchase powers.
The council refused to comment, but CWG bristled at the suggestion that funding is under "significant threat" due to recent reports that parent company Songbird Estates is "in danger of breaching its loan covenants".
A Canary Wharf Group plc spokesperson said: "This is an exciting project which will deliver significant benefits to the local community and economy.
"It is entirely wrong to suggest the financial position of Songbird Estates plc impacts on the development of Heron Quays West or any other Canary Wharf Group project.
"Canary Wharf Group's finances are healthy, with cash balances of approximately £1 billion, low office vacancy levels and long average unexpired leases.
"60.8 per cent of Canary Wharf Group shares are owned by Songbird Estates; however its financial position is completely independent."
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I don't understand how a developer is able to persuade a council to issue compulsory purchase orders in this manner. Surely social contributions are planning considerations, not purchase issues. The council should not be bailing the developers out of not being able to purchase land, simply because they are too tight to be able to afford the prices current tenants want.
What's next? If a developer wants to build on my house, is make a quick call tot he Council all they will have to do?
Tower Hamlets Council should be ashamed of itself.
It sounds like the leaseholders are just trying to get more money out of Canary Wharf. They claim that there is a lot of empty office space in the area, so what is the big problem to move to new premises?
But Steve, they're within their rights to screw money out of the developers if they're in possession of something the develops want. By bribing the Council like this the developers are being given carte blanche to go behind the back of any commercial deal.
It's not as though the development we're talking about is of major social or industrial need - it's just office blocks. Office blocks that are already surplus to requirements. Why have the council weighed in then? Why are they concerning themselves with the commercial success of Canary Wharf PLC?