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In 2003 and 2005 the Council approved entering into a development agreement with Clydeside Properties (Glasgow) Ltd to deliver an integrated development of Custom House Quay.
The basis for dealing with this developer was that they had taken over the ground lease from the Council of the former Trading Post nightclub.
The combination of the interests was seen as the best way of providing a comprehensive development of this important stretch of river frontage.
The length of time taken to bring plans forward has been brought about by a number of circumstances, include obtaining finance; the large development costs principally arising from the rebuilding of the quay wall; and developing proposals which Glasgow City Council regarded as appropriate for this site.
The principal development agreement terms are
- The land will be initially leased to the developer. The land for each phase will be excised from the lease and sold to the developer as the development phase is complete.
- The land value will be based on the residual site value after deduction of development costs including the new quay wall.
- The Council will also received a share of any super profit above a defined developer’s profit.
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The other principal partner in the original development consortium approached the Council with a proposal to take over the development agreement and deliver the project.
The new consortium comprises Newby Management UK, the previous partner, is a Yorkshire-based company that has developed a large number of office, hotel and mixed use developments across the United Kingdom. The second partner is Moorfield Real Estate, a large real estate fund with £3 billion available for development. They have a specialism in hotel development. Santander are the third and final partner - the bankers were involved in providing finance from the original proposals are still keen to remain involved and provide funding support.
Newby Management UK and Moorfield Real Estate will be partners in a new vehicle - Clydeside Waterfront Ltd - to carry out the development.
The liquidator of Clydeside Properties (Glasgow) Ltd has agreed to assign the rights in the development agreement to the new potential developer, Clydeside Waterfront Ltd. Santander who now hold the ground lease of the former nightclub have also agreed to assignation of the lease to Clydeside Waterfront Ltd.
Councillor George Ryan, Executive Member for Business and the Economy at Glasgow City Council, said: "The development of the Custom House Quay site will be a significant step towards the regeneration of this part of the Clyde waterfront, and would provide a natural link from the Clyde to the city centre."
(GK/BMcC)
