As part of our commitment to keep supporters informed the team working on the Lionel Road project for Brentford Football Club has provided the following progress report:
As explained in previous progress reports the project has effectively been on hold while the club’s development partner, Barratt Homes, carried out a review of the impact of the credit crunch on the project economics.
To summarise the current situation, the Brentford FC (Lionel Road) Ltd project team and Barratt have now agreed the following statement:
- The project to create a new stadium for Brentford Football Club, a leisure centre, hotel and other facilities, together with over 1,200 new homes on three sites in Hounslow offers one of the most exciting regeneration opportunities in London.
- Brentford Football Club has been working with Barratt Homes for three years to develop the project.
- The recent economic downturn and severe drop in residential values has led to an economic environment wholly different from when the site at Lionel Road was secured in 2007.
- Given the adverse economic environment, Barratt Homes and Brentford Football Club have been reviewing the scheme in the light of the changing market conditions.
- This review has now been completed, and Barratt Homes and Brentford Football Club have agreed to ‘mothball’ their partnership work for 12 months, pending a recovery in house prices sufficient to close the substantial funding gap that currently exists.
- During this 12 month period, Barratt Homes is ceasing all work and expenditure on the project.
- Brentford FC will continue, however, to search for solutions to develop a viable project and Barratt has agreed that the club’s project team may discuss potential alternative approaches with other parties.
- In the absence of any other initiatives, Barratt Homes and Brentford FC will review the position again in 12 months time.
Following the above statement, the Brentford team is already taking a completely fresh look at the project to see if an alternative scheme can be developed and delivered, which would meet the club’s requirements for a new purpose built stadium commensurate with the ambition to play in the Championship.
Brentford’s project manager, Brian Burgess, commented “We are grateful for all the time and resources that Barratt Homes has put into helping the club to secure the site at Lionel Road, to developing the plans and to trying to find a way to make it work in the currently depressed housing market. Unfortunately it is just not possible to make the existing scheme work at the moment.”
“Given the club’s exciting plans to push for promotion to the Championship we are now searching determinedly for an alternative, less ambitious scheme that might be achievable in a shorter timescale than simply waiting for the housing market to recover fully”
Background information
1) In order to create specific responsibility for this project the Brentford FC Ltd Board has set up a subsidiary company called Brentford FC (Lionel Road) Ltd, which has two shareholders:
Brentford FC Ltd with a 99% interest
Brentford Football Community Society Ltd (Bees United) with 1 ‘golden’ share, giving certain veto rights over the actions of Brentford FC (Lionel Road) Limited. In particular this golden share, which represents 1% of the issued share capital, gives Bees United the right to a veto over any issue or transfer of shares, the disposal of assets over a material level, the use of land for any purpose other than that of a sports stadium, the charging of assets, the implementation of any liquidation proceedings and the payment of any dividends. In addition Bees United have the right to appoint a minimum of one director to the board of Brentford FC (Lionel Road) Limited.
The directors of the company are Greg Dyke (Chairman), Brian Burgess, Chris Gammon (Company Secretary), Mike Power and Donald Kerr.
More detailed information on the development of the project to date can be found on the website www.brentfordcommunitystadium.com.