Queensborough sues property firms

Queensborough Holdings is claiming £1.4m in damages against two property companies over the collapse of a sale-and-leaseback deal on its Hotel Burstin in Folkestone, Kent.

It has issued a writ claiming deceit, negligent misrepresentation and breach of contract against property investment companies Dunstone Management, Fordgate and one of its employees, Moises Gertner.

Queensborough claims the two companies had agreed to buy the hotel through a joint venture company called Faversham Properties.

The failure of the hotel deal led to the collapse of Queensborough's plans to buy 46 Deep Pan Pizza restaurants from City Centre Restaurants for £9.75m.

A spokeswoman for Queensborough claimed that as a result the company had been left with costs of £1.4m.

The sum included redundancy payments for staff who had been appointed to manage the restaurants, property agents' fees and the cost of circulars to shareholders.

No one from either Dunstone or Fordgate was available for comment today.

by Christina Golding