A £20 million offer to get rid of dangerous ACM cladding on tower blocks built by Ballymore developers has been dismissed as a "publicity stunt” by leaseholders in east London.
The offer came from Ballymore's managing director Simon Pratt after the company met Housing Secretary Robert Jenrick on May 8, the day after a blaze at New Providence Wharf tower complex near Canary Wharf.
The minister warned Ballymore about delays over removing the non-fire retardant material four years after the Grenfell tragedy in west London in which 72 people died.
The developer initially promised the government £15m in February, but has now told residents’ associations that it would raise its contribution to £20m.
It said it hopes "all costs of remedial works for fire safety can be covered between the government’s fund and Ballymore’s fund" and the new contribution will provide “additional financial reassurance to leaseholders”.
However, the announcement brought scepticism from New Providence Wharf's leaseholders.
“This self-congratulatory nonsense from Ballymore is repugnant,” leaseholder Natalie Carter told the East London Advertiser. “The £20m is a publicity stunt which sickens me to my core.
“Ballymore had already committed £15m for six developments and 16 buildings, with just £500,000 to New Providence, just over three per cent.”
It will cost £12m to make New Providence Wharf safe. The government is putting £8m into the kitty, which leaves a £3.5m hole that leaseholders fear they may have to fill.
“We won't know what allocation of the extra £5m is until September,” Natalie added. “Assuming it remains at 3.33pc — that brings it to £667,700 against a potential bill for us leaseholders of £3.1m.
“Don't for a second think this is a benevolent gesture. Our service charge has gone up almost 53pc since the Grenfell disaster.”
Mr Pratt’s letter to residents, seen by the Advertiser, promises “additional financial reassurance to leaseholders”.
The company acknowledges that "leaseholders bought properties in good faith just as we built them in good faith" within building regulations.
A company spokesman said: "We told the government that we intended to increase the fund to £20m to bridge the shortfalls between the cost of works and what will be covered by the government funds.
“We are hopeful that all costs of remedial works for fire safety can be covered between the government’s fund and Ballymore’s fund. However, we won't be able to commit this until the final scope of works for each building to fully understand the shortfalls and hope to clarify this by September."
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