Issue - meetings

Appendices 2 and 3 to the report are exempt from publication as they contain commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Finance, Performance and Core Service introduced a report on the proposed purchase of 62 new, affordable tenure homes at Town Quay Wharf, Barking.

The Cabinet Member advised that Weston Homes PLC had secured planning permission to redevelop Town Quay Wharf and provide 147 new homes (35% affordable), new ground floor commercial space and a central public area on the River Roding.  Weston Homes had approached the Council and Be First with an opportunity to accelerate the project via a Development Agreement whereby the Council would purchase 62 units on completion at a discounted rate in exchange for the transfer of Council-owned land in the locality to facilitate the overall development scheme.  The development project would also include adjustments to the Town Quay road network to make better use of the land and river frontage.

The Cabinet Member explained that Be First would manage the transaction on behalf of the Council and monitor the development process to practical completion, estimated in 2024/25.  Once completed, the new units would be held and operated by Reside as part of its residential portfolio, with any financial surplus made being paid back to the Council.  It was confirmed that the proposed terms were in accordance with the Council’s Investment and Acquisition Strategy criteria and would help the Council to achieve its ‘Inclusive Growth’ objectives through the provision of much needed, affordable social housing.

Cabinet resolved to:

(i)  Approve the purchase of 62 affordable tenure homes from Weston Homes on a turnkey basis for the price of £14,635,162 (circa £236k per unit);

(ii)  Agree to the transfer of LBBD land at Town Quay Wharf to Weston Homes PLC to facilitate the Town Quay redevelopment proposal as a consideration contribution towards the acquisition of the 62 affordable tenure homes;

(iii)  Agree the borrowing of up to £11,295,534 (net development cost) within the General Fund from the Public Works Loan Board to finance the entire development subject to satisfactory due diligence;

(iv)  Approve in principle to enter into a Development Agreement with Weston Homes to deliver 62 units for a total development cost £16,331,251 for expected completion in 2024 subject to satisfactory due diligence, including acceptable parent company and SPV checks and security arrangements;

(v)  Agree the scheme meets the Investment & Acquisition Strategy financial performance metrics delivering a positive net present value of £3.5m;

(vi)  Approve the appointment of relevant technical due diligence and legal advisors and to manage the transaction on behalf of Be First and the Council;

(vii)  Agree to the use of an existing or the establishment of a Special Purpose Vehicle(s) as required within the Barking & Dagenham Reside structure to develop, own, let, sale and manage and maintain the homes in accordance with the funding terms in a loan agreement between the Council and Special Purpose Vehicle;

(viii)  Agree to allocate £924,000 GLA Shared Ownership grant funding, subject to a successful bid, to support the financial viability of the shared ownership tenure;

(ix)  Agree to allocate £2,900,000 GLA LAR grant  ...  view the full minutes text for item 31