The company which was set to enter into a controversial £2bn regeneration partnership with Haringey LBC has threatened to take legal action against the council if it votes to abandon the plan.
A report to be considered by a Haringey’s cabinet on Tuesday recommends the council withdraws immediately from negotiations with Lendlease as the successful bidder and seeks to establish housing company wholly owned by the council.
Haringey’s former leader Claire Kober (Lab) and other senior councillors stepped down at May’s election following a local campaign against the HDV, citing in-fighting within the party.
Ms Kober’s successor and former deputy Joseph Ejiofor’s election manifesto promised to end the HDV.
In a letter to the council on Monday, Lendlease chief executive Dan Labbad said the company had “invested considerable time, people, know-how and money” on developing the HDV, which would have aimed to deliver 6,400 new homes in the borough.
He added: “Whilst our strong preference is to work as your partner in delivering our joint commitments to provide new housing and regeneration, if the cabinet decides to reverse our appointment as the successful bidder, we will have no choice but to seek to protect Lendlease’s interests given our very significant investment over the last two and a half years.”