GREENWICH University may cancel its planned move into the Royal Naval College buildings following an apparent shift in the tenancy offer.
The university says it will pull out of the Greenwich college site unless the future proprietor, the Greenwich Foundation for the Royal Naval College, offers the institution more space within the 300-year-old buildings which were designed by Sir Christopher Wren.
Greenwich deputy vice chancellor John McWilliam said the university had understood that it would occupy the majority of the space in the college, now being vacated by the Navy after 125 years.
The Greenwich Advisory Group, under Dame Jennifer Jenkins, was set up nearly two years ago to assess the original bids for tenancy and it recommended that Greenwich be the main occupant. The university, which is trying to cut the number of separate sites it owns, then started to sell off and vacate smaller sites in preparation.
The foundation, set up by the previous Government, recently proposed to the university that it occupy a significantly smaller area of the college buildings than it had envisaged. It told the university to prepare a new business plan by early July.
Mr McWilliam said: "If the foundation finds that it cannot offer the university tenancy of the majority of the estate then, I think, it would be fair to say that the university's interest in the college would come to an end.
"The university would regret very much not occupying the site. It would be a great pity but not a disaster. We have other land and planning permissions and we would get on with business."
The advisory group expressed reservations about the university's ability to pay for the upkeep of buildings. It estimated the cost of bringing the buildings up to scratch at up to Pounds 25 million, plus Pounds 2 million annual maintenance costs. Its report said the university may have to defer or curtail some of its aspirations.
Francis Carnwath, chief executive of the foundation, said that there had been no real change in the offer to the university. He said that the advisory group recommendations were the starting point and that he hoped the situation would be resolved within the next two to three weeks.
Mr Carnwath said: "I am fully aware of the university's minimum requirements for the site. I think everyone wants to see this resolved and that someone is on-site by 2000."