Issue - meetings

Appendix 1 to the report is exempt from publication under the provisions of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended), as it contains commercially confidential information and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Cabinet Member for Finance, Performance and Core Services presented a report on the opportunity for the Council to purchase the long leasehold of the Dagenham Heathway Shopping Centre.

The Shopping Centre and Millard Terrace, the 156-unit residential housing estate on the upper deck, were constructed in 1988.  The Cabinet Member advised that whilst the floorspace occupancy levels at the Shopping Centre were high and the area was popular with local residents, the current unit sizes and internal arrangements undermined its potential.  However, the most significant concerns related to the Millard Terrace housing estate which had recurring repair problems and compromised accommodation. 

The entire site had been identified as a medium to long term regeneration opportunity for inclusion in the Borough Extended Estates Programme 2023 – 2033 and Be First’s latest Business Plan included initial feasibility work.  The Cabinet Member commented that the purchase of the long leasehold of the Shopping Centre would enable the Council and Be First to accelerate the redevelopment timeline and promote a high-quality, comprehensive regeneration scheme consisting of between 400 – 500 new residential units and refreshed retail provision.  Therefore, while the purchase of the long leasehold represented a solid investment opportunity for the Council in itself, the marriage value associated with owning the entire site would give rise to significant additional benefits.

Cabinet Members spoke in strong support of the proposal and the wider regeneration benefits that would stem from it.

Cabinet resolved to:

(i)  Agree to purchase the long leasehold interest in the Heathway Shopping Centre for an acceptable value subject to not exceeding the maximum purchase price set out in Appendix 1 to the report;

(ii)  Authorise the Chief Operating Officer to agree and approve an asset management strategy for the Shopping Centre;

(iii)  Note that the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) shall apply with the transfer of the Shopping Centre Manager to Be First; and

(iv)  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 agree and execute all the necessary legal agreements, contracts and other documents associated with the resolution subject to satisfactory due diligence.