Developers urgently seeking re-finance for £1.5 billion Docklands project in London

A major east London development which includes a futuristic aquarium designed by international architect Terry Farrell has been dumped by the London Development Agency.

It has pulled out of deal with developer Silvertown Quays on the £1.5 billion east London project which includes 5,000 homes, offices, shops and leisure facilities with a sandy beach on a prime site next to London City Airport.

The LDA, which owns the land, has served termination notices on the developer, Silvertown Quays Consortium which was granted planning permission for the project in April 2007 but has been hit by the global financial crisis.

The project first ran into difficulties with the collapse of the residential property market in the UK as this seriously affected the plan to part finance the development through forward sales of housing and bank HBOS suspended funding.

Silvertown Quays now has a three month period in which to respond to the LDA notices.

The company s hopeful it can come up with a solution in time. Chief executive David Taylor said that the group was close to agreement with a 50:50 joint venture partner.

‘I’m extremely disappointed in the way the LDA has dealt with this. Since HBOS suspended funding last year, I have been working flat out to get the project restructured and refunded,’ said Taylor.

An LDA spokesman said the company just wants the development to move forward.

‘With regret, after a prolonged period without progress, the LDA has decided to serve termination notices in respect of its arrangements with Silvertown Quays Limited,’ he said.

‘This decision reflects the Agency’s concern to ensure that this land is released for longer term planning of development at Silvertown Quays which is a key site for the overall regeneration of the Royal Docks,’ he added.