CLIENT
-
Greater London Authority
CLIENT INDUSTRY
-
Public sector
SERVICES PROVIDED
-
CPO and expert witness
LOCATION
- London City Airport
SIZE/VALUE:
- £8m
DATE
- 2011 - 2017
CHALLENGE
Savills were instructed by the Greater London Authority, as owners of the dock bed required for the expansion of London City Airport, to negotiate an agreement to release rights for London City Airport to carry out their proposed airport expansion and associated development.
An agreement was reached for the GLA to grant a 125 year lease in return for an annual rent linked to the number of passengers per annum. This agreement was never documented.
London City Airport subsequently sought a Compulsory Purchase Order to acquire the land and rights required to deliver the scheme and Savills were appointed to negotiate compensation for the acquisition of their freehold interest and to object to the Order.
SOLUTION
Savills submitted an objection to the CPO on behalf of the GLA, and Kirk Macdiarmid was appointed to act as expert witness. At the same time Savills were appointed to negotiate a settlement of compensation under the Compensation Code.
RESULTS
In return for agreeing to withdraw their objection (which incidentally was Sadiq Khan’s first decision as Mayor of London) LCA agreed to settle the claim for compensation based on the unique ransom position the GLA enjoyed.
The relavance of this instruction highlights our experience in dealing with complicated valuation and compensation settlements that directly impact airport related infrastructure.