Development Securities is to sell Oriental City to a private property investor.
DevSecs' planned redevelopment of Oriental City - a 100,000 sq ft retail scheme in Colindale north London – had been plagued with problems and resisted by local traders and the oriental community in the borough of Brent.
DevSecs won planning permission to knock down the existing shopping centre and create a mixed-use scheme but at the beginning of this year traders threatened to pursue a judicial review against DevSecs.
An agreement and compensation package was reached in June with the traders but DevSecs decision to sell the site leaves a question mark over the plans for the site.
A DevSecs statement said it had planned ‘to implement the new scheme itself, possibly in conjunction with a residential developer. However, this specific disposal to realise the value in the site and reinvest equity released into the company's expanding development programme was viewed to be in shareholders' interest.’
The sale of Oriental City is set to complete at the end of November. DevSecs will make a net gain of £16m from the sale.