News

Sale of Development Site

Our clients owned a 4 acre industrial estate to the rear of the Sage in Gateshead. We were originally instructed back in the early 2000’s when Gateshead MBC threatened compulsory purchase proceedings as part of the Gateshead Quays Development. We successfully argued at that time that there was no justification for a CPO. At that time the residential market was very strong and there was keen interest from a number of residential developers and the client entered into a conditional joint venture deal for the sale of the site. At this time the vendors were being advised by national Agents introduced by the residential developers.

The development of the site was always very sensitive and the sale dragged on. We were instructed in 2006 to provide a valuation of the site for site for taxation purposes due to a part disposal.

By 2009 the residential market was much less strong and the joint venture deal stalled. However Gateshead Council remained keen to secure development of the site and working with 1NG expressed renewed interest in purchasing the site.

Initially the client dealt direct with the Council but was unable to come to a satisfactory agreement and instructed us to negotiate on their behalf. After negotiations resulting in a significantly improved offer on the basis of an unconditional sale terms were agreed for the disposal of the site in March 2010. We were able to incorporate into the agreement a disturbance payment reflecting the loss of investment income to the client and a contribution to our fees and also the legal fees.

Gateshead Council are now proposing to build a new Conference Centre on the site.