'Capco, Surrender Now And Hand Back Our Homes!'
West Ken residents say they are being 'held hostage' by Earls Court developer
Residents of West Kensington and Gibbs Green Estates say they and their homes are being 'held hostage' by Earls Court developer Capco, accusing the company of demanding planning permission to build thousands of extra new homes in return for releasing their estates back to Hammersmith & Fulham Council.
The residents of what has been dubbed 'the People's Estates' say this would 'hype the value' of the 77 acre site as Capco prepares to sell it.
This month, new figures showed that the value of the scheme had dropped for the third year in a row, down by another 15.6%, from £759m to £658m, after falling from £1.01 million the previous year.
Capco's management team also confirmed plans to demerge it from its estate in Covent Garden preparations for a possible demerger are now well advanced.
Negotiations with potential purchasers Hong Kong-based CK Asset Holdings, are reportedly also continuing.
The two estates, which are home to 2,000 people, were sold in 2012 by Capital & Counties, or Capco, for £110 million by the then Conservative-run Hammersmith & Fulham council and were scheduled for demolition as part of the vast Earls Court development.
However, since then the development has run into trouble, and H&F Council's current Labour administration has demanded that the estates be 'handed back entirely” to the council, thus securing the residents' futures.
On their website the residents say: " The 760 homes of the People’s Estates and the futures of its 2,000 residents are being held hostage by a property speculator.
" In exchange for their release, it has demanded from the three planning authorities a preferential planning permission to build thousands of homes extra to its existing permission – a ransom worth billions of pounds.
"Capco is a public company listed on the London and Johannesburg Stock Exchanges. It’s a constituent of the FTSE 250 Index. Capco is trying to hype the value of its Earl’s Court assets because it’s desperate to persuade potential buyers to pay as much as possible for what one of those potential buyers told our MP Andy Slaughter was 'this stalled development'.
" Capco, Hammersmith & Fulham Council, the Mayor of London and the Secretary of State all know that thanks to Capco’s failures, the planning permission for Earl’s Court is incapable of ever being implemented and that the agreement to sell the estates is incapable of ever being enforced.
" So, how can a public company demand an unacceptable planning permission in return for the release of our community from the endless menace of forcible displacement? And, how could any democratically accountable public authority possibly agree to such an exorbitant demand under that sort of duress?
"Last year, Hammersmith & Fulham and Kensington & Chelsea Councils said no. Now, Mayor of London, Sadiq Khan, has issued Capco with a stark warning: 'We inherited a totally untenable situation at Earls Court, and as I made clear in November last year, I want to see the West Kensington and Gibbs Green estates handed back entirely to the London Borough of Hammersmith & Fulham ahead of alternative plans being progressed and determined.
" 'I understand that since then Capco have suggested they would make the transfer of the estates conditional on a performance agreement and receipt of an acceptable planning permission. This is not acceptable – and my patience is wearing thin. TfL have therefore made very clear on behalf of the GLA group that progress [with the joint venture development]depends on Capco transferring the estates back to LBH&F unconditionally.'
" Hammersmith & Fulham Council, meanwhile, is considering compulsory purchase of Capco’s land interests so it can ensure not only that development actually happens, but also that the proportion of affordable housing is significantly increased.
" We warn Capco, and we warn anyone thinking of buying Capco’s Earl’s Court assets: the community of the People’s Estates has stood together through ten long years. From highs to lows, through thick and thin, we’ve defended our neighbourhood. We’ll never give up.
" Capco! You’re beaten. Surrender now and hand back our homes immediately!"
Hammersmith & Fulham Council has confirmed that it is considering a compulsory purchase order for another part of the site, the former Earls Court Exhibition Centre site and Lillie Bridge Depot site.
The council said: " The purchase would both accelerate the delivery of homes and let the council increase the number of affordable homes. Only a few hundred of the 7,500 consented new homes have been delivered across the Earl’s Court Opportunity Area since 2013."
Last year H&F Council also threatened legal action against Capco, saying in a statement that it had launched an investigation into the original sale of the the estates and had independent financial advice that the 2012 decision was inadequate in several respects.
The council added: "This could lead to legal action being taken, which could lead to criminal prosecution."
A Capco spokeswoman however said the original sale of the estates 'was entered into freely by LBHF and followed all necessary process in the appropriate way, including sign off by LBHF’s Cabinet and the Secretary of State'.
March 1, 2019
