Decision details

The Cabinet will be asked to approve proposals relating to the entering into of a Development Agreement with Weston Homes for the delivery of 233 affordable housing units as part of the Abbey Quay development project.

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 funding, subject to a successful bid, to support the financial viability of the LAR tenure;

(x)  Agree the 2.5% Be First fee of £422,862 to act as Development Manager and Construction manager on behalf of the Council;

(xi)  Agree to set up a Capital code with the required budget of £16,331,251 to deliver the project;

(xii)  Agree to transfer £20,000 of pre-Gateway 2 costs incurred by Be First to date to the Capital code;

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

(xiv)  Delegate authority to the Finance Director, in consultation with the Managing Director and Cabinet Member for Finance, Performance and Core Services, to agree the funding and finance arrangements to fully implement the project.