On 17 July, the recently elected Haringey Council voted to cancel the Haringey Development Vehicle (HDV) which has been strongly opposed by part of the local community. The HDV, worth £2billion, was Haringey Council’s plan for a 50:50 deal with private developer Lendlease. The deal would have seen the council giving some of its existing land to Lendlease for development which would see Lendlease match this with cash and development expertise.
Council leader Joseph Ejiofor said the decision would set a ‘new direction for the council.’
The BBC reported that the council has already spent £2.5million on the scheme and now owes Lendlease £520,275 for withdrawing.
Dan Labbad, chief executive of Lendlease Europe, said that Lendlease made ‘every effort to work with the council to find a way forward…’
Haringey Council now plans to establish a wholly-owned development company in order to deliver council-owned homes and retain ownership of its commercial portfolio.