Decision details

In January 2018, Cabinet approved the purchase of the office block on New Road.  The office was owned by Unite the Union who were building a new office at Dagenham East and it was agreed that Unite could remain at Transport House on commercial rent terms until their new office was complete.  The office is now vacant and Cabinet will be asked to agree proposals for the site.

Cabinet resolved to:

(i)  Approve the preferred option and tenure mix as set out in the report which would deliver 50% market rent and 50% affordable housing comprising 45 Affordable Rent homes let at up to 80% of market rent and 30 London Affordable Rent (LAR) homes;

(ii)  Approve in principle to enter into a Development Agreement with Hollybrook Developments to deliver 149 units for a total development cost of £44.5m for expected completion in 2024 subject to satisfactory due diligence;

(iii)  Approve in principle the borrowing of up to £37.7m within the General Fund to finance the entire development subject to satisfactory due diligence;

(iv)  Agree to allocate up to £3.8m restricted Right to Buy receipts, if required, to fund the construction and professional fees to support the financial viability of the affordable housing delivery;

(v)  Agree to allocate £3m GLA LAR grant funding, subject to a successful bid, to support the financial viability of the LAR tenure;

(vi)  Note that the scheme meets the Council’s Investment and Acquisition Strategy financial performance metrics;

(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, sell and manage and maintain the homes in accordance with the funding terms in a loan agreement between the Council and Special Purpose Vehicle; and

(viii)  Delegate authority to the Managing Director, in consultation with the Strategic Director of Law and Governance, to agree and execute any agreements and contract documents to fully implement the project.