King Alfred back on track

2:30pm Friday 10th October 2008

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Two potential investors have expressed an interest in backing the multimillion-pound King Alfred scheme, according to the developer.

Josh Arghiros, director of Karis, told The Argus about the as-yet unnamed backers for the Hove development.

He will now try to finalise new financing plans before meeting bosses at Brighton and Hove City Council.

An agreement between the council and Karis to redevelop the site as part of the £290 million scheme is due to expire on November 9.

Planning permission was granted for the project in March last year.

Proposals include 751 homes in 11 buildings, including two towers up to 98 metres high.

An £80 million sports centre, small shops, a police office, a GP surgery, cafés, restaurants and public spaces are also part of the plans.

But the controversial scheme was thrown into doubt this summer after Dutch bank ING withdrew funding and Karis was forced to look for new investors.

The council’s cabinet had been due to discuss a report on the development of the scheme in September but it was deferred until October 16.

However, the date has now been pushed back again until November 20, which would be outside the parties’ agreement deadline.

Both groups will now meet this month to see whether any new financing can be put in place, and if so, whether that agreement could be extended.

Mr Arghiros said: “We are meeting to discuss a way forward and hopefully we will come away in these difficult times with maybe a bit of a smile.”

He added that two potential investors have expressed an interest in coming on board with the project.

He said: “I think the whole world is in turmoil in respect of funding at the moment.

“What I have got is some banks and investors that are interested in getting involved in the project, which shows they recognise the potential in it.”

A spokesman for Brighton and Hove City Council said: “The agreement won’t necessarily expire on November 9.

“If Karis comes forward with a re-financing package before then there is the possibility that an emergency cabinet could be called to agree an extension.”