Romal successfully sues Peel for breach of contract at Liverpool Waters
A judge has found in favour of Greg Malouf’s development company, which claimed Peel moved the goalposts on a land deal, resulting in a substantial loss of earnings.
The exact amount of compensation Romal Capital will receive has not yet been determined but estimates suggest it could be in the region of £10m.
Romal said that it had missed out on millions in profits as a result of Peel’s actions when it brought the lawsuit earlier this year.
Romal is developing a 330-home development at Liverpool Waters – where Peel is master developer – but insists the scheme would have had almost double the number of units had Peel not breached an agreement for lease and refused to assist Romal in obtaining planning consent.
Romal sought damages from Peel on the basis that two larger schemes – 646 units and 538 – would have generated far higher profits than the £13.1m generated by the 330-home project.
Romal states the 646-apartment project would have generated up to £27.5m profit and the 538-flat scheme up to £23.6m.
It was Romal’s position that Peel’s actions amounted to a breach of the agreement for lease and made it “impossible or very substantially more difficult, for Romal to obtain planning permission” for the scale of scheme it had been hoping to deliver at Central Docks, according to court documents.
Peel’s defence stated that it gave Romal “no warranties or representations” and that the agreement for lease signed by the two parties “conferred upon Romal an opportunity”. Peel added that Romal itself “failed to abide” by certain “contractual steps”.
A judge has found in favour of Romal saying that Peel had breached the AfL by not assisting Romal to secure planning permission for the larger scheme.
“There was a total lack of endeavour on the part of Peel to seek to integrate Romal’s designs with its own designs for Central Docks,” the judge said.
Greg Malouf, chief executive of Romal Capital, said: “Today’s judgment enables our dedicated team to move forward with renewed energy and focus, working alongside professional partners that share our vision for excellence and our belief that great cities are built through collaboration.
“Our team of engineers, designers, and construction specialists remains committed to placemaking—creating spaces that are as inclusive and inspiring as the city they serve and love.
“We will continue building homes, improving infrastructure, and delivering projects that celebrate this great city’s heritage while shaping its future.”
A spokesperson from Peel Waters said: “We acknowledge today’s judgment and are disappointed with the outcome. We remain committed to the successful delivery of Liverpool Waters and will now take time to review the judgment in detail before considering our next steps.
“Our priority continues to be working collaboratively with partners to bring forward new homes, jobs and investment for the city.”
The Court will award Romal substantial damages of:
- The percentage chance multiplied by the difference in the profits that Romal might have expected to make on the 646- home scheme compared to the consented 330-home scheme
- Lost ground rent income on sales that would have been completed pre-June 2022
- Interest on those damages.
How we got here
According to court documents, Romal Capital signed two agreements for lease that would, subject to conditions, grant Romal a 200-year lease for land at plot C02 in the Central Docks neighbourhood of Liverpool Waters in 2018 for a combined £2.75m.
The developer claims it signed the leases with the intention of redeveloping the site into five buildings providing 646 apartments. Plans for that scheme were lodged in late 2018.
Two months previously, Peel had submitted amendments to the Liverpool Waters outline planning permission to include a cultural square that Romal claims encroached onto the land it had earmarked for its apartment scheme.
This action, Romal claims, was “to the detriment of Romal and for [Peel’s] financial benefit…[and made] it more difficult for Romal to obtain planning permission for the 646-unit scheme”, according to the documents.
“If the [site] were required to accommodate part of the Cultural Square, there would be insufficient space on it to accommodate the number of residential units anticipated by the Agreement for Lease,” the documents state.
A second application by Peel in 2019 sought to “re-orientate plots C-01, C-02 and C-03 to reflect the revised route of the Jesse Hartley Way”.
This application, as well as the first, and a third seeking sign-off for the Central Docks Neighbourhood plan, made it “impossible, or very substantially more difficult, for Romal to obtain planning permission for the 646-unit scheme”.
As a result, Romal revised its plans, reducing the number of units to 538. This plan was not supported by the council due to “a lack of justification for the infill of the West Waterloo Dock and the impact on the Cultural Square”.
Ultimately, Romal secured planning permission – via appeal – for a 330-apartment project, which is due to complete in May 2027.
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