The sale of Dundee’s Wellgate Shopping Centre is at risk of falling through amid a legal wrangle with the council.
The building was snapped up at auction a year ago but the purchase has still not been completed.
The sale has now gone to arbitration where an independent advocate or a surveyor will rule on the case.
The exact nature of the wrangle has not been made public but it’s known Dundee City Council is refusing to approve the purchase.
The local authority owns the land the centre was built on and the sale cannot go through until it approves the transfer of the ground lease.
It leaves prospective owners Belgate Ltd and sellers Gloucestershire-based St James’ Place, in limbo.
Arbitration in process for Wellgate sale
St James’ Place, which has £142 billion of funds under management, bought the building for £31.2 million in 2011 but sold it for £1.4 million in December last year.
Property sales can go to arbitration, which is akin to a private court, if there is a dispute.
If a settlement is not reached with all three parties concerned then the entire sale could fall through.
Belgate’s property and asset manager Stephen Hill recently said he was growing “incredibly frustrated” with the council’s delays.
He said a “huge amount of momentum has been lost” buts stressed firm is doing everything it can to support St James’ Place and secure consent from the council.
It comes after the council revealed it is open to completely demolishing the Wellgate if its owners agree to such a plan.
The local authority produced concept design images to “stimulate debate” over what the city centre could look like in 30 years.
And these showed the building flattened with the area around it pedestrianised.
Nobody at Belgate was available for comment on the latest developments.
A spokesperson for St James Place said: “We continue to work constructively with the council to achieve a sale of the Wellgate Shopping Centre.”
A spokesperson for Dundee City Council gave the same statement issued previously.
He said: “With every property transaction the council enters into it has a duty to ensure best value which includes only transferring a lease if the potential new tenant can demonstrate that it can honour all the obligations under the lease.
“The council cannot discuss any matters relating to its commercial dealings with any third party.”
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