News and Press
TLT advises British Waterways on major City development

TLT has advised British Waterways on its joint venture with Groveworld Limited and Miller Developments Limited in relation to a new development of 100 apartments with a mix of social rented and shared equity in a dedicated tower at 259 City Road, London. This was the first phase of a major residential development at the head of the City Road Basin in Islington, which, when completed, will contain an additional 200 apartments for private sale together with retail units.

In this transaction the freehold owner, British Waterways, granted 259 City Road a 999 year lease of the whole site. 259 City Road subsequently entered into a development agreement with Family Mosaic Housing, under which 259 City Road procured the design and construction of the tower and ancillary works and granted Family Mosaic Housing a 125 year two stage lease of the tower. 259 City Road also entered into a JCT design and build contact with Ardmore Construction Limited in relation to the works.

This transaction was interesting commercially because Family Mosaic Housing funding kick-started the larger development in a situation where only a few residential schemes of this size are being implemented. It was technically challenging because of the financing, the physical interface between the two phases of the development and the legal interface between the development agreement and the JCT contract.

James Lazarus, British Waterways’ Head of Property South, said, “It’s great to see the area around City Road Basin in Islington coming to life again. This is a fantastic waterside location that makes the most of its position next to the historic Regent’s Canal. The commencement of building is a great sign that the masterplan for the area will be delivered, bringing significant benefits to the area and its residents. This is a further phase in the project at 259 City Road, which will be delivered by February 2012, by which point we hope that we will also be working towards the completion of the other phases at City Road Basin. The work here complements the public realm works already completed, opening up the Basin area to the public and continuing the rejuvenation of this corner of Islington.”

Dick Mortimer, Group Director of Development at Family Mosaic Housing said: “I am delighted to be part of this major regeneration project in City Road which will culminate in a superb development in an excellent location. Family Mosaic and the Homes and Communities Agency have worked extensively to kick start this project by both providing funding to enable the affordable and private sector development. This partnership will not only see the start on site of 259 City Road but will also help to drive the further phases of the project forward.”

Tim Rowe of TLT acted for British Waterways assisted by David Hobbs. Chris Snodin, partner, of Harold Benjamin Solicitors acted for 259 City Road assisted by his partner Chris Batty and also by partner Paul Dutch and trainee solicitor Belinda Batty. Wendy Wilks of Maclay Murray & Spens LLP acted for Family Mosaic Housing assisted by Helen Hutcheson and Nicole Hatch. David Emberson of Eversheds LLP acted for 259 City Road’s mortgagees, Investec Bank plc, assisted by Matthew Ingram.