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Former site of the Middlesex Hospital |
Noho Square is left in bad shape as brothers pull out
Controversial former hospital site proposals become victim of credit crunch
THE controversial Noho Square project has collapsed – the latest victim of the credit crunch – leaving an abandoned wasteland on the site of the former Middlesex Hospital.
The land on Mortimer Street, Fitzrovia has been left in the hands of nationalised Icelandic bank Kaupthing hf after multi-millionaire developer brothers Nick and Christian Candy dramatically pulled out of the deal on Friday.
And with the 273-apartment proposals seemingly dead in the water, residents are calling for the three-acre site to be transformed into public space, and have pledged to resist over-development by a new buyer using the credit crunch as an excuse to build hotels or shops.
Bloomsbury councillor Rebecca Hossack said: “They’ve pulled down that beautiful building, like the ghastly vandals they are, then cleared off. At the very least, there is one thing in Bloomsbury we need and that is a park – and we should see if we can turn it into allotments.”
Activists who opposed the Noho development have warned that the result of the economic turmoil could further worsen the future of the site. Max Neufeld, chairman of the Charlotte Street Association, said: “The credit climate could be used as a lever on Westminster (Council) for a new application. The worst outcome would be planning permission for a mix of uses, an even greater amount of accommodation.”
While the credit crunch makes housebuilding unprofitable, the site should be used for “temporary open space”, Mr Neufeld added.
The collapse of the deal has its roots in the impact of the lending crisis on Iceland, and the implosion of house prices and construction in the UK.
Kaupthing hf was the biggest shareholder in the Guernsey-based consortium which bought the Middlesex Hospital site from University College Hospital for £175m in June 2006. The Candy brothers’ company, CPC Group, owned a third, while Camden Market magnate Richard Caring reportedly held 10 per cent.
When Kaupthing hf went into administration earlier this month, after the Icelandic government saved it from bankruptcy, rumours circulated that CPC would buy them out. As late as October 25, the Candy brothers told the New Journal: “We are considering our options.”
But yesterday, a CPC Group spokeswoman announced that CPC had dumped its equity in Noho on to Kaupthing, in a swap for the bank’s share in another joint venture in Beverly Hills.
She added: “For Noho Square, Candy and Candy will cease to continue as development managers, interior designers and sales and marketing consultants.”
Privately, the CPC Group has told the New Journal that its equity in Noho had been worthless because the site was now worth less than £100m.
However, CPC has stressed that the door remains open for the Candy brothers to return to the project. Their spokeswoman said: “We would be interested in purchasing Noho Square, in the future, as a potential joint venture with Kaupthing hf or an outright sale – we know more about the site than any other party. We are in a good shape and can move fast on deals.”
No one was answering the phone during the past week at Kaupthing hf, which now owns 90 per cent of the Noho project.
But in a statement, a Kaupthing hf spokesperson said: “We still have every confidence in the site, and believe it is capable of supporting a world-class development.”
King’s Cross plan ‘on track’
TOWN Hall regeneration chiefs have repeated their hopes that the King’s Cross development will help pull Camden through the currrent financial crisis.
The borough’s deputy leader. Councillor Andrew Marshall. said he was “still fairly confident” that the £2billion King’s Cross scheme will succeed.
He told a full council meeting on Monday: “It is one of the most significant opportunities.”
A planning application for a new Sainsbury’s headquarters was submitted last week and the King’s Cross Central General Partnership, the consortium of developers Argent and land-owners London Continental Railways, have denied suggestions that the collapse of loan talks with German banks threatens the scheme after a cash injection from Argent.
A spokeswoman for the project said: “The recent major investment King’s Cross Central General Partnership reflects the confidence that we all have.” |
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