Barratt Homes Withdraw from Brentford Stadium Project

Brentford FC considering its options

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Lionel Road Project has effectively been on hold for over a year while the Club’s development partner, Barratt Homes Ltd (Barratt), carried out a review of the impact of the credit crunch on the project economics.

The severe downturn in the economy and the significant fall in property prices has left the project in severe difficulties. Whilst Barratt has worked closely with the Football Club to support the project, after an exhaustive examination of all options, Barratt Homes has concluded that the project is no longer economically viable.

Barratt has therefore decided to withdraw from the project and has now terminated its Lock Out and Confidentiality Agreement with Brentford FC (Lionel Road) Ltd, with effect from 21st January 2011. This agreement committed the two parties to work together exclusively to negotiate a detailed and legally binding development agreement in accordance with agreed Heads of Terms. Some of its provisions with respect to maintaining confidentiality continue to apply.

The Club still has an Option and Pre-emption Agreement with Barratt, which gives Brentford FC (Lionel Road) Ltd the right to purchase the site for a defined period. The terms of this are commercially confidential.

Following the previous progress report in June 2010, the Brentford team has already been taking a completely fresh look at the project to see if an alternative scheme can be developed and delivered, which would meet the Club’s requirements for a new purpose built stadium commensurate with the ambition to play in the Championship.

Brentford’s Chairman, Greg Dyke, commented “It is clearly disappointing news but we are looking for an alternative partner and funding. We are also looking at alternative sites although we are still hopeful that we will eventually build a new stadium at Lionel Road.”

The Club has been working closely with Hounslow Council for many years to achieve a satisfactory long term solution to the Club's need for a modern stadium. On hearing the news, Brentford Ward Councillor Matt Harmer commented: "On behalf of the local councillors I am very disappointed that Barratt Homes has withdrawn from this project. Clearly it will deliver significant community benefits in addition to the stadium so Hounslow Council will continue to support the Football Club in its efforts to develop a modern stadium and ensure the continuation of its excellent work in the community."



January 27, 2011