Adriatic Land 3 Limited agreement with Redrow Real Estates Limited

For Leases granted by Redrow Real Estates Limited that were acquired by Adriatic at Crawford Building, London E1 and Kingston Riverside, Kingston-Upon-Thames KT2

We are pleased to confirm that, following an agreement between developer Redrow with Adriatic, Adriatic will offer to remove rent review clauses from 210 leases at Kingston Riverside, originally granted by Redrow with rent review clauses doubling more frequently than every 20 years (Doubling Clauses). Adriatic will also vary the overriding lease owned by Redrow at Crawford Building to permit them to vary those residential underleases held under their lease which contain Doubling Clauses.

This follows discussions between Redrow and the CMA relating to leases with Doubling Clauses, including those where Redrow had sold its interest in those leases on to freeholders like Adriatic.

As a result of an offer made by Redrow to Adriatic, Adriatic has agreed to vary the relevant leases at Crawford Building and Kingston Riverside respectively, for the benefit of the leaseholders, to remove the clause increasing ground rent completely. Redrow will administer the variations to its underleases at Crawford Building and HomeGround will be administering the variation of leases at Kingston Riverside on behalf of Adriatic.

Kingston Riverside – offer to leaseholders

The Adriatic offer to vary the leases at Kingston Riverside is open for leaseholders to take up for a period of two years, or until all the relevant leases have been varied, if the process is completed earlier. The key elements of the offer to vary are as follows:

The rent review clause in the leases will be removed entirely, meaning the ground rent remains at the level set at commencement, and will not be increased during the term
Adriatic will meet its own costs of the variation and no costs or fees need to be paid by leaseholders to Adriatic or HomeGround
Adriatic will meet the leaseholders’ legal costs in connection with appointing their own solicitor up to a capped maximum sum agreed with Redrow

We have written to the leaseholders of Kingston Riverside who own leases originally granted with Doubling Clauses with full details of the offer and how to take this up.

Leaseholders of Redrow residential flats at Crawford Building should contact Redrow direct at graham.cope@redrow.co.uk and barbara.davies@redrow.co.uk stating the leaseholder’s name, address and original plot number.

Leaseholders of Network Stadium Housing Association Limited (NSHA) residential flats at Houblon Apartments should wait to hear from NSHA once NHSA are in a position to vary their leases.