Twist in the sale as Whitecross Street shops go for £3.5m

Published: 06 August, 2010
by RÓISÍN GADELRAB

A WOMAN in red, a botched bid at auction and a multi-million pound row of buildings were the key players in the latest chapter of the Whitecross Street story.

The dilapidated block of nine shops and flats on Whitecross Street, off Old Street, which have been at the centre of a long drawn-out dispute, were sold following an auction last Thursday for £3.5million.

But there was a twist in the sale.

Owner Doreen Tibbs, a Whitecross Street market trader, inherited the flats from her father years ago and the buildings have since fallen into disrepair.

In January, Islington Council issued a Compulsory Purchase Order on the building but this was later rescinded when Ms Tibbs took her case to appeal before a government planning inspector.

Then last Thursday morning, the properties appeared on the auction list at Covent Garden’s Grand Connaught Rooms. All the players were there. 

Ms Tibbs in a red suit and sunglasses, bidders standing under the illustrious building’s chandeliers, interested market traders and residents and the auctioneers reminding buyers the minute the hammer strikes, “you are under a binding contract”.

Ms Tibbs didn’t want to talk, telling the Tribune: “You know what people are like [when you’ve got money]. You get begging letters.”

Then lot 18 was called – 141 to 157 Whitecross Street, nine shops with homes above and planning permission to be converted into 15 flats, guide price £3.5m.

The bidding began, back and forth, until an elderly man clinched the final bid of £3.4m.

But all was not well.

The buyer claimed to have misheard the auctioneer and thought he had bought the properties for a lower price.

He later told the Tribune: “The auctioneer was very fast and I’m a little bit deaf in one ear – my offer was £3,250,000. I’m waiting to hear if the owner will accept my offer.”

When it became apparent the bid was not acceptable to the seller, auctioneers Barnard Marcus sprang into action, contacting all original bidders, and before the day was out the property was resold for £3.5m.

Chris Glenn, Barnard Marcus auctions managing director, said: “If someone comes to an auction and bids for a property they are under a legally binding contract. The bidder in the room is liable for the contract. 

“On this particular occasion the contract was rescinded and a new contract issued almost immediately after. We run a very professional auction. We know exactly who’s bidding in the room. Many other auctioneers don’t require bidders to register in advance.”

He added: “It’s a very major thing to bid at an auction and refuse to sign the contract. My seller can sue, if they wish, purely on the deposit – which in this case is £350,000.”

He said the new owner was not yet ready to unveil his plans for the properties to the public.