The London Eye Company (LEC) is to go to court in an attempt to prevent a rise in rent on its South Bank site, which is owned by the South Bank Centre (SBC).

Up until December 2004, the LEC paid £65,000 a year in rent. Recent reports claim this could rise to £2.5m.

The tourist attraction – which is jointly owned by British Airways, Tussauds Group and Marks Barfield Architects – has announced that it is seeking a judicial review of the increased rent because the SBC has not withdrawn its eviction notice of 14 December 2004.

Michael Lynch, chief executive of SBC, said: “It is a matter of considerable disappointment that BA London Eye is focusing its attention on instituting legal proceedings which we are advised are completely groundless and will create still further delays and considerable unnecessary expense.”

A spokesperson for the SBC also denied that an eviction notice had been served against the LEC and said that a rent increase of £2.5m was completely fictitious.

The centre has until 6 September to respond to the LEC’s application for a judicial review, before a judge decides whether court proceedings will continue.

The SBC is working in parallel with the London Borough of Bromley – on behalf of all 33 of the city’s boroughs – in order to negotiate the new arrangements with LEC. Details: www.londoneye.com