Wednesday 7 November 2007

Arrowcroft To Make an Offer

According to Property Week, Arrowcroft and Croydon Council are about to make an offer to Stanhope Schroders for the Croydon Gateway site.

Paul White of Frogmore (the company that is providing finance for the arena) is quoted by Property Week as saying:

"Notwithstanding the fact that we have now been told there is an overage* provision, that won't get in the way of negotiations on our acquiring Stanhope and Schroders' interest in the site."

*Overage provision is a condition attached to the sale of land, where anyone buying the site would pay more if or when planning permission for the site is granted.

However, don't worry, it should be noted that there is a £47M to £55M discrepancy between the two sides over how much they think the site is worth.

The fact that the council and Arrowcroft are looking to make an offer, before the end of the inquiry, indicates that they don't believe that they are going to win.

Sign the petition against the arena via this link on the Number 10 website: Petition

1 comment:

Anonymous said...

Thats always been the problem for Arrowcroft. They have never been able to put the money where there mouth is.

IF they had, the Arena would now be very close to reality.

Large parcels of land have been available on the open market and Arrowcroft could have bought them.

IF they had, Stanhope would have been in a difficult position. They would not have owned the whole site being promoted for development (they have owned for a long time the site south of Lansdowne Road). The CPO would then have been easier to win.

The problem for Arrowcroft is that no CPO has ever been used to buy land off of one developer and sell it to another.

In any case Stanhope would always sell for the right price. They have Schroders backing them with a property Unit Trust. If the right offer came in they would be obliged to sell.

The problem for Arrowcroft is the scheme is barely affordable as it is. They have 'loans' of £25Million allocated here and there just to pay for the cladding of the Arena.

All very odd. As they say, only in Croydon!