An inspector for the secretary of state has refused to confirm a compulsory purchase order made by the London Borough of Barking and Dagenham to redevelop a shopping centre, in what has been called a “hammer blow” for the area.
The council filed a CPO for the Vicarage Field shopping centre and its surrounding land in June last year. Its development partner was fund manager PineBridge Benson Elliott, which was slated to deliver a circa 300,000 sq ft redevelopment that included up to 855 new homes and a 150-bedroom hotel. The site has already obtained outline planning permission, which expires in April 2023.
A public inquiry on the CPO was held in April this year after almost 70 objections were received, closing in June.
Katie McDonald, the inspector appointed by the secretary of state, said in her decision that while she acknowledged “the pressing need for redevelopment and the extremely compelling case for the CPO”, she could not “confirm that the compulsory acquisition of the land included in this order is proportionate or justified in the public interest”.
“I am completely aware that failure to confirm the CPO would have an adverse consequence of losing the opportunity to comprehensively redevelop the site at this time,” said McDonald.
More than £40m has been spent on the project so far, with the developer expecting another £20m would be required prior to works starting.
While McDonald said she had “no doubt that the developer has access to funds” and that the funding intentions were clear, she highlighted a “fundamental lack of tangible and substantive evidence” on financial viability.
She also underlined concerns that “inadequate negotiations” with impacted parties had taken place, worsened by a three-year lag from the council’s cabinet approving the making of the CPO to making the CPO, as well as a “significant” delay in submission of reserved matters applications.
Henry Church, senior director – compulsory purchase at CBRE, called the decision a “hammer blow to Barking” on social media.
He added that the failure to provide an up-to-date viability assessment, as well as meaningful engagement with affected parties, had “come at a high price”, with the council now “facing claims for what are likely to be very substantial costs from successful objectors”.
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