New Covent Garden tenants have made the first step towards taking their futures and the future of the market into their own hands.
Tenants representing more than 75 per cent of the market’s rentable value voted on Tuesday to consider the possibility of leading a joint venture project with Nick Saphir, to take the market off Defra’s hands and move it in a direction agreed by traders.
Saphir, who was responsible for the 2002 report on London’s wholesale market sector, addressed a full conference room at Nine Elms, and outlined a proposal that would see a party led by him take on 50:50 ownership and management of the market with its tenants.
Having already discussed his proposal with its executive, Saphir suggested Covent Garden Market Tenants’ Association (CGMTA) could establish a new commercial company as its half of the jv. Shares would be distributed to tenants who wished to participate and who would have a role to play in future development plans.
Saphir has become frustrated in the three years since his report. The initial enthusiasm for his concept of three composite markets in London unravelled as the Corporation of London and Nine Elms landlord Defra quarrelled over the detail. “Three years on, I still believe the report is absolutely right. There has been a lot of posturing, but nothing has happened,” he said. “Time is not on the side of New Covent Garden.
Saphir, who has previously managed wholesale branches at Nine Elms for his family firm, said now is the time for tenants to act. “One of the key points in my report was that tenants should be more involved in the running of markets,” he said. “Until now, no-one has offered Nine Elms tenants a serious involvement. But for this to be a vibrant market that has to happen.”
The CGMTA and Saphir, who has two potential partners on his side, will now jointly produce a detailed prospectus for all tenants. At this stage, all financial commitments will be made by Saphir; tenants have only committed themselves in principle to studying further the possibility of a joint venture.
Once the prospectus has been presented, at least 75 per cent of tenants (by rent value) must again agree with the financial and development plans in order for a bid to be prepared and tabled to the government. Saphir believes that the jv should be looking to table a bid by September 1.
“Something is inevitably going to happen here,” he told tenants, “and if you wait another six months you may be too late to play a part in that. If you believe you have enormous power as sitting tenants, I suggest you go and take a look at your leases.” Tenants at NCG are generally on short-term leases.
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