Decision details

By Minute 34 (20 October 2020), the Cabinet approved the purchase of up to 936 homes from Countryside Properties as part of the Beam Park regeneration project.  Since that time the Development Agreement has been entered into and this report will present proposed changes to the project and the latest viability issues, for Cabinet approval.

Cabinet resolved to:

(i)  Agree the viability improvement measures set out in the report to enable the acquisition of 520 units within Phase 6 of the Beam Park development (excluding commercial units) from CPUK on a turnkey basis for an estimated total price of £166.4m and total scheme cost (including interest) of £183.5m;

(ii)  Allocate up to £36.4m of Right to Buy receipts to ensure positive cashflows for Phase 6 of the Beam Park development;

(iii)  Approve a handover loan to Reside of £114,356,401 to develop, own, let, sell, manage and maintain the Phase 6 properties in accordance with the funding terms set out in the report;

(iv)  Note that the revised proposals for Phase 6 of the Beam Park development meet the IAS return metrics, producing a Net Present value of £38,943,950;

(v)  Agree to confirm to CPUK that as the Council was unable to meet the Funding Condition within the Development Agreement in respect of Phase 7 of the Beam Park development, the Council was not able to proceed with the acquisition of properties within that phase; and

(vi)  Note that should additional grant or loan funding be secured which provided a positive cashflow for Phase 7 of the Beam Park development, a further report would be submitted to Cabinet.