Procurement and best value challenge to £125m scheme gets green light

A High Court judge has granted a developer permission to bring a procurement and best value challenge to a £125m development agreement between one of its rivals and West Berkshire Council, it has been reported.

Mr Justice Gilbart this week gave Faraday Developments permission to apply for judicial review of the decision by West Berkshire to enter into the agreement with St Modwen Developments.

Valued at £125m in the VEAT notice issued by the local authority, the agreement concerns the intended redevelopment and regeneration of the London Road Industrial Estate in Newbury.

Faraday Developments has property and commercial interests in the estate and was a joint venture partner in Wilson Bowden Developments' bid to be West Berkshire's development partner for the project.

According to Landmark Chambers, the grounds of challenge allege:

  1. that the council failed to comply with its duty under s.123 of the Local Government Act 1972 to obtain the best value reasonably obtainable for the disposal of its property interests under the agreement and
  2. that the agreement was within the scope of the Public Contracts Directive and Regulations and therefore ought to have been subject to public procurement under those provisions.

A parallel claim under the Regulations has been conjoined with the judicial review proceedings.

A spokesman for West Berkshire said: "We’re aware that leave has been given for a legal challenge and are preparing to robustly defend our position. We will not be in a position to comment further until the legal proceedings have concluded."

Landmark Chambers said: “The procurement grounds raise issues of potentially wide significance as to the circumstances in which development agreements must be subject to public procurement.”

Charles Banner and Heather Sargent from the set are acting for Faraday Developments, instructed by DAC Beachcroft.

David Elvin QC and Luke Wilcox, also from Landmark, are acting for West Berkshire Council, instructed by Bond Dickinson.