Issue - meetings

Appendix 2 to the report is in the private section of the agenda at Item 18.

Further to Minute 85 (23 January 2018), the Cabinet Member for Finance, Performance and Core Services introduced a report on the proposal to purchase the freehold of the Londoneast-uk surplus land site and the freehold purchase of The Cube site at the former Sanofi site, Rainham Road South, Dagenham.

The Cabinet had previously agreed terms for the freehold purchase of the Londoneast-uk surplus land site and the lease of The Cube site.  Ongoing discussions with the owner had led to the opportunity to purchase the freehold of both sites, which had been the Council’s preferred position from the outset, on revised terms. 

The Cabinet Member explained that ownership of both sites, in addition to the land already owned by the Council at the location, should lead to an uplift in land values given the plans for a world-class film studios development as part of the major regeneration of the location.  It was also proposed that capital funding be set aside for potential investment in The Cube site, with a view to generating more lettable floorspace or increasing the value of the site for future sale.

The Cabinet resolved to:

(i)  Approve the revised terms of the freehold purchase of the Londoneast-uk surplus land site and the freehold purchase of The Cube site on the terms set out in Appendix 2 to the report, for inclusion in the Council’s Investment and Acquisition Programme;

(ii)  Authorise the Chief Operating Officer, in consultation with the Director of Law and Governance and the Cabinet Member for Finance, Performance and Core Services, to enter into all necessary agreements to complete the freehold purchase of the sites identified in the plan at Appendix 1 to the report;

(iii)  Agree that up to £6.5m of capital funding be set aside for improvement / extension works to The Cube to enhance its longer-term viability; and

(iv)  Authorise the Chief Operating Officer, as advised by the Investment Panel and/or Assets and Capital Board as appropriate, to determine the future arrangements for The Cube site in accordance with the Council’s Investment and Acquisition Strategy.