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Council terminates contract with developer over 730-home scheme
A council on the South Coast has terminated a development deal for a 730-home scheme after five years.
Southampton City Council has revealed it broke off the conditional landowner development agreement with RPW (Southampton) Limited in May.
The authority is now looking for another investor for the 35.4 acre Royal Pier Waterfront site, which it partly owns.
It has not explained the reason for the termination of the deal that was signed in 2014.
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RPW submitted an outline planning application for the site in September 2015, including proposals for luxury flats, a new hotel and a casino on land reclaimed from the River Test.
It said at the time that building work would start the following year, but the scheme is yet to receive planning permission.
In a statement Southampton City Council said: “As one of the landowners of Royal Pier Waterfront, Southampton City Council terminated the conditional landowner development agreement with RPW (Southampton) Limited in May of this year.
“We will continue to work with neighbouring waterfront landowners, Associated British Ports and The Crown Estate, as well as the occupiers, to explore the potential for deliverable development plans for this important location that meet the strategic needs of the city and its residents.
“The Royal Pier site is a prime area of gateway waterfront that is to be developed in line with other key sites in the city that have already been successfully brought forward over the past few years.”
It added: “Southampton City Council is looking to secure suitable investment for the Royal Pier Waterfront site and welcomes all expressions of interest from potential investors to work with us to deliver a world class waterfront destination for the city.”
In 2017 the BBC reported that RPW’s owner, KMG Capital Markets, had told shareholders that surveys of the river bed had shown “significant concerns with buildability” for the scheme.
RBW’s latest accounts show it made a £611,111 loss in 2017 and a £580,384 loss the previous year.
KMG Capital Markets has been contacted for comment.
