Representation by Marathon Asset Management MCAP Global Finance (UK) LLP (Marathon Asset Management MCAP Global Finance (UK) LLP)
- Date submitted
- 27 October 2023
- Submitted by
- Members of the public/businesses
This firm acts for Marathon Asset Management MCAP Global Finance (UK) LLP, who manage assets for HI (London Gatwick) Limited and HICP Limited. For the purpose of this letter we refer to these companies as “our Client”. HI (London Gatwick) Limited is the long leasehold owner of land, which is registered at the Land Registry under title number SY574001 and is held under a headlease dated 30 April 1987 made between (1) The Metropolitan Railway Surplus Lands Company Limited and (2) Trusthouse Forte (U.K.) Limited, for a term of 99 years expiring on 31 October 2085. On 31 March 2016, HI (London Gatwick) Limited granted an underlease of this land to the current occupational tenant, HICP Limited (which is a group company of HI (London Gatwick) Limited), for a term of 20 years expiring on 1 April 2035 and which is registered at the Land Registry under title number SY836088 (with both interests now being referred to as the “Property”). The Hotel on the Property is operated under the “Holiday Inn” brand (the “Hotel”). Our Client has been made aware that Gatwick Airport Limited (“GAL”) has applied to the Secretary of State for Transport under s37 of the Planning Act 2008 for a Development Consent Order (“DCO”) to authorise alterations to the existing northern runway at Gatwick Airport. This, alongside the lifting of the current restrictions, would allow for dual runway operations and associated development (“Project”). The proposed Project would also include surface access (including highway) improvements and landscape / ecological planting and environmental mitigation. Our Client is the long leasehold owner and operator of the Property known as Holiday Inn London Gatwick Airport, Povey Cross Road, RH6 0BA, over which the proposed DCO looks to: • Acquire permanently 2,249sqm of the Property show on the plan annexed to these Representations (Plots 1/026, 1/042, 1/057, 1/061, 1/067, 1/072 & 1/073) to make amends to the highway A217, London Road and Longbridge Road • Acquire temporarily 316sqm of the Property shown on the plan annexed to these Representations (Plot 1/062) for the purpose of the construction of the amended A217 and Longbridge Roundabout layout. These proposals would adversely impact our Client’s Property and operation of the business through: • Removal of part of the direct access from the main eastern entrance of the Property to the A217. • Restricting customer access to the Car park • Removal and reconfiguration of landscaping around the Property. • Removal of the turning circle which allows larger vehicles to access the main eastern entrance to the Property, which is heavily utilised by the Hoppa Bus around the airport estate, a key offering of the business. • Increase to ambient and maximum external noise levels with associated impacts on acoustic conditions for rest and sleep within the Hotel. Having reviewed the amended plans presented in the Summer 2022 consultation, the Phased Construction Plan 2032 & the published Land and Works plans as part of the DCO submission and in response the s51 Planning Act 2008 request by the Planning Inspectorate, our Client is concerned that the Property will be adversely affected by way of access and environmental impacts, in particular through the impact of noise and the construction works carried out adjoining and on the Property. Those concerns are further confirmed via the terms proposed for an option agreement that was provided to our Client via GAL’s Agents dated 21 March 2023 (the “Option Agreement”). The terms of the Option Agreement show a fundamental lack of understanding of our Client’s use of the Property and operation of the business, which could and should have been better understood by GAL through meaningful engagement and consultation with our Client. Our Client would like to make clear that it does not oppose the principle of the application itself but has significant concerns with the impacts of the project as it is currently permitted and the way in which they have been engaged with to date. Our Client’s main concerns are related to: • The negative impact of the proposed Project on traffic management and customer access to the Property through the temporary use and permanent acquisition of parts of the Property. • The Project proposes to permanently acquire land that is part of the main access to the Property. • The negative impact of proposed construction works and amended highway layouts as part of the proposed Project on the operation of the Hoppa Bus route and associated business provided by the ‘Park Stay and Fly’ Scheme. • Alongside the Hoppa Bus, disruption caused by the proposed construction works along the entire A217 will adversely impact all traffic to and from the Property. Disruption caused by such an imposition of traffic management measures throughout the project, such as lane closures, diversions, and queues, will create significant uncertainty about travel times and will have the effect of marginalizing the Hotel’s market appeal, resulting in a loss of business. • The impact of construction works and future air and road traffic increases on the ability for the Hotel to fulfil ongoing and significant contractual obligations in providing airline crew rest rooms. Such obligations require quiet, restful conditions in the daytime as well as night and defaulting on this could result in the loss of contracts and potential income. • The negative impact on trade of all of the above will result in business losses and reputational damage to our Client’s business. • The resulting landscaping works and associated remedial costs and associated professional fees that would need to be carried out to reconfigure internal vehicle access at the Property, namely the turning circle and access to customer drop off. It is expected that our Client will received compensation and mitigation for the above concerns regarding impacts and disruption. To date, correspondence between GAL and our Client has not been adequate nor have solutions been proposed to mitigate the impacts on the Property on account of the proposed Project. We note that prior to our Client taking control of the Property, GAL’s land referencer’s wrote to the previous operator in November 2019, stating that they would be applying for a Development Consent Order pursuant to which it had a duty to attempt to identify and consult with anyone who may have an interest in land potentially affected by the proposed development. In January 2020, our Client’s legal advisers completed and returned GAL’s Land Information Questionnaire on the Property as requested. Stantec, our Client’s technical advis.ers, additionally contacted GAL for more information to which they were informed the Project was on hold due to the Coronavirus pandemic. We are not aware of any further correspondence until 7th October 2022. Our Client is willing to engage with GAL with the objective of reaching an agreement on a mitigations deed outside of the formal DCO process. Should GAL not be willing to engage meaningfully to agree to a mitigation deed that serves our Client and addresses their concerns in respect of the impacts of the Project on the operation of the Hotel, our Client will have no other option than to seek protective provisions on the face of the DCO. Our Client will also require to be heard at a compulsory acquisition hearing, which we are preparing for, as prescribed under s92 of the Planning Act 2009 in respect of those parcels of land to be temporarily and compulsorily acquired by GAL. A substantive written representation is being prepared to be submitted in due course.