Capco Denies Agreeing to Hand Back West Ken Estates to Council
Capco confirm plans which would lift 'the curse that has sorely afflicted our community'
Capital & Counties (Capco) has denied it agreed to hand back the housing estates at the centre of its controversial Earls Court scheme to the London Borough of Hammersmith and Fulham, despite a claim from the council’s leader that such a deal was struck almost five months ago.
Councillor Stephen Cowan, leader of Hammersmith and Fulham, has written to local residents to inform them he has asked Capco to stick to the agreement he claims was made in March between himself and Capco’s chief executive Ian Hawksworth.
In the letter to residents, seen by Property Week, Cowan wrote: “On 2 March 2018 Capco’s chief executive told the council that the Capco board had agreed that it is in the best interest of both Capco and the council to return the West Kensington and Gibbs Green Estates, Gibbs Green School and Farm Lane to the council. I have written to the Capco board urging them to stick to this statement and do so quickly.”
However, a spokeswoman for Capco said Cowan’s claim that such a deal was struck was not true.
“The London Borough of Hammersmith and Fulham have expressed interest in pursuing alternative options for the estates” said the spokeswoman. ”Capco continues to engage with LBHF and other stakeholders in relation to future plans for the estates. In the meantime, the conditional land sale agreement, a binding agreement entered into with LBHF in relation to the estates in 2013, remains in place.”
In response to Capco’s denial, a spokesman for Hammersmith & Fulham said the council maintained the text of the letter was accurate and that Capco had agreed to hand the estates back during the March meeting.
Cowan added the council would return funds already paid to it by Capco in return for cancelling the conditional land sale agreement.
“All the money we would need to do this remains ready and can be released with 10 days’ notice,” Cowan wrote.
The Labour leader, who took the helm of the council in June 2014 after the previous Conservative administration had approved CapCo’s plans for the 77-acre site and the demolition of the two housing estates, added: “For nearly ten years now, thousands of residents who live on the West Kensington and Gibbs Green estates have suffered too much uncertainty and worry about the future of their homes. We think it’s right that we end that. I hope the Capco board share that sentiment and act with expediency to do so.”
£450m of writedowns
Last week, Capco revealed another £52m loss in value at Earls Court, bringing total writedowns at the scheme to more than £450m since 2016.
The group, which is currently considering a demerger to split its two core holdings at Covent Garden and Earls Court into two separately listed businesses, reported the latest writedown in its half year results for the six months to the end of June.
Capco reported Earls Court is now valued at £707m, 7% down since the end of December 2017 when
Estates are celebrating with relief and elation after a letter from H&F Council Leader Stephen Cowan revealed that he and colleagues are 'negotiating hard' with Earls Court developers Capco to return the estates to council control.
Capco has also confirmed that it is drawing up a new masterplan for the giant 77 acre Earls Court development which would see the council take back control of the estates, which contain 760 homes and almost 2,000 residents.
Residents have been campaigning against demolition of their homes to make way for luxury flats since plans were revealed almost ten years ago.
This week, Stephen Cowan's letter revealed that Capco is now proposing to develop a new masterplan for the Earls Court scheme and he says if that gets planning permission, it would see the two estates return to council control.
In response, Community Organiser, Jonathan Rosenberg, issued the following statement from the estates' three residents organisations: "At £18 billion, the Earl’s Court scheme is the most valuable on-site urban redevelopment in the world outside of China.
"For nine long years, residents have been fighting to save their homes and preserve their community. Our campaign has been through some very dark times. But right now there is a tremendous wave of excitement sweeping across the estates.
"The Council Leader is working very hard to get the estates out of the land sale contract. We believe that our campaign is on course for victory and we look forward to finally lifting the curse that has so sorely afflicted our community."
Developer Capco has been forced to changed its plans for the huge Earls Court development due to the slump at the top of the property market. As we reported in February of this year, the development lost a fifth of its value during 2016, with slow sales at the first phase, Lillie Square in Seagrave Road.
Work is progressing on the second phase, on the site of the now demolished Earls Court Exhibition Centre.
However, the redevelopment of an adjoining site on Lillie Road, surrounding Empress Place has been put on hold for at least two years.
As we reported last month, this is being reopened on 15 November as a pop-up venue called The Prince, with a row of pop-up independent shops to follow.
In his letter, Stephen Cowan says: "On 10 August 2012, the approved Earls Court scheme was valued at £12.05 billion. That scheme included all the homes on the West Kensington and Gibbs Green estates.
"A few months later, at a cabinet meeting on the 3 September 2012, it was agreed that Capco could buy the 21 acres that made up those estates for just £110 million, with a weak and insufficient provision for replacement affordable homes.
"This was a poor deal for residents. In fact, the terms of that contract failed to guarantee to provide replacement, like-for-like homes, for all the current estates’ residents which meant many residents would not be re-housed.
" My colleagues and I have been negotiating hard to either get the estates back or radically improve the deal and secure new, like-for-like homes for all our residents on the two estates."
He adds: "There are many steps before finalising this agreement, but I wanted to let you know what’s happening as soon as possible.
"We’ll keep you informed and involved. My colleagues and I will continue to put our residents’ needs first. I will
write to you again when I have more news."
You can read more residents' reactions - and see more delighted faces - at their website The People's Estates.
November 10, 2017
