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Deal still not signed on Elephant & Castle project as TfL and developer talk
Mira Bar Hillel24 Dec 2008
The £1.5billion regeneration of Elephant & Castle has suffered a major setback, it emerged today.
A deal confirming the revamp was supposed to have been signed in July last year, but insiders have revealed it will not be signed until May next year.
The delay is being caused by negotiations between Transport for London and developer Lend Lease, which is also responsible for the 2012 Olympic Village.
The renovation plan is supposed to involve the redevelopment of the Northern line, as well as an overhaul of the area's southern roundabout and northern gyratory system but complications over alterations to the transport links mean the plan is now on hold until spring.
Paul Noblet, Southwark council's executive member for regeneration, said: "I am totally committed to the regeneration of Elephant & Castle and I have been personally reassured that despite the current economic situation, Lend Lease wish to conclude this deal as quickly as practical.
"However, it would be irresponsible for either side to agree a deal before the negotiations with TfL are concluded."
Lend Lease is set to develop the 170-acre site in the town centre with a scheme including 6,000 homes and a shopping complex.
The intended completion date was 2014 but the Australian company has suffered several setbacks in Britain this year and it is unlikely the scheme will be completed by then.
In July the Olympics Delivery Authority announced that Lend Lease had failed to raise the £450billion of private funding it had said it would find.
The company is now project manager for the athletes' village instead of the main developer.
In August Lend Lease also pulled out of a £3billion scheme to redevelop council estates at Canning Town and Custom House, not far from the Olympics site.
They also ditched a £500million plan to redevelop the town centre of Stockport in Cheshire, over which it signed a development agreement with Stockport council in July last year. Construction was expected to start in 2010.
September saw the resignations of both the UK chairman and deputy chairman of Lend Lease, Nigel Hugill and Robin Butler, who were behind the firm's massive expansion in Britain.
In 2002 Southwark Land Regeneration pulled out of a £1.5billion scheme to regenerate Elephant & Castle, with towers by Lord Foster, 18 months after being chosen to be the council's development partner.
The reason was said to be failure of the developers to agree with the local authority over the role of the private sector.
A TfL spokeswoman said: "TfL and the Mayor are both supportive of the regeneration of the Elephant & Castle.
"We are working in partnership with Southwark council and Lend Lease on a feasibility study which will identify the impacts of the proposed development on the transport network.
"Any costs for the project rest with Lend Lease. This work programme has been agreed between all parties and should be complete by spring."
Lend Lease declined to comment.
Reader views (1)
The recent announcement by the Mayor to pull funding for the Cross River Tram and other public transport projects in South London wont do anything to boost confidence at E&C. It's a short sighted move which will have long term consequences for the potential of those living in some of the capital's most inaccessible and poorest communities!
- Phil, Peckham, SE15, 25/12/2008 12:46
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