Shares in Barratt Developments (LON:BDEV) took a hit on Thursday, after the developer announced it had withdrawn from a £6 billion development deal with Enfield Council.
The Meridian Water project in the North London borough, is expected to be among one of the largest developments in London, creating around 10,000 homes once completed.
A joint Barratt/Segro venture was announced as the preferred development partner for the project back in May of 2016.
However, the partnership has been subsequently terminated, after the local authority branded the housebuilder’s terms “unacceptable” and Barrratt took the decision to formally withdraw.
A spokesperson from the North London council said:
“Enfield Council can confirm that, if Barratt would not confirm its commitment to a number of key elements of its own bid by today at the very latest, then a recommendation was to be presented to a Cabinet meeting on Monday 30 October that its position as preferred development partner for Meridian Water be terminated.”
The spokesperson added: “Meridian Water remains one of the most exciting development opportunities anywhere in London but we were simply not prepared to sign up to what we considered to be a poor deal for the residents and businesses of Enfield.
“Enfield Council therefore informed Barratt that their proposed terms were unacceptable which has now led to discussions with them ending.” They added.
Enfield Council have said they intend to continue to work with partners in the private sector to move towards completion of the expansive project.
News of the termination of the contract initially sent Barratt Developments shares plunging, as the market reacted.
This follows “modest growth” reported for the company back in September, which failed to impress investors at time.
Shares in the company have currently rebounded after initial losses, up 0.74 percent as of 14.59PM (GMT).