Brookfield Multiplex has settled a multi-million Pound legal dispute over KPF’s £800million Pinnacle skyscraper project in the City of London
In a statement, the main contractor said: ‘Brookfield Multiplex can confirm that an agreement has been reached on outstanding payments relating to construction work already carried out and as part of the settlement Brookfield Multiplex will now work with the investors to refine the scheme.’
Insolvency proceedings had been mooted if the payment row was not resolved.
Late last year the company began proceedings in the Technology and Construction Court, to reclaim four interim payments for work undertaken on the City’s tallest skyscraper project.
Brookfield claimed £14.95 million in unpaid fees from the Pinnacle No 1, which owns the scheme.
A parallel claim for £15.58 million was also made against parent companies The Pinnacle Holdings and The Pinnacle.
The owners were ordered by the court to pay Brookfield, after they failed to file a defence against the claim.
The Pinnacle scheme has been on hold for several months due to funding issues. Construction News revealed in January that Brookfield had told workers to down tools following concerns over financing, on the orders of client Arab Investments.
Arab Investments is developing the scheme on behalf of majority Middle Eastern owners the Saudi Economic and Development Holding Company.
The Pinnacle project has been specifically designed for an investment bank tenant, complete with a trading floor, but work on securing a pre-let for the skyscraper had already been halted as the owner sought to renew its debt facilities.
Postscript: Statement from Pinnacle No 1 (11.1.13)
The Pinnacle No 1 Limited announces that it has secured finance to continue the Pinnacle project over the next two to three years with an extension of the HSH Nordbank loan. It has also reached agreement with Brookfield Multiplex which will see the two companies to continuing to work together on the project going forward. The Pinnacle No 1 Limited will initiate a review of the scheme with Brookfield Multiplex and will make a further statement following the completion of this review.