Issue - meetings

Appendix 2 to the report is exempt from publication as it contains commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Regeneration and Social Housing presented a report on the opportunity to enter into a Development Agreement with Countryside Properties relating to the construction of 936 new homes as part of the Beam Park regeneration project in the south Dagenham area of the Borough.

It was noted that Countryside had secured outline planning permission in 2019 for 3,000 homes across eight phases that covered land owned by the Greater London Authority (GLA) within both Barking and Dagenham and Havering.  Countryside had commenced Phase 1 of the project and the current intention was for Phases 3, 4 and 5, covering 936 properties on land adjacent to Kent Road within Barking and Dagenham, to commence from late 2026 with completion in 2032.  The Cabinet Member explained that the Council’s involvement, led by Be First, could bring forward the delivery of those phases by 4 - 5 years and, on completion, the properties would be held and operated by B&D Reside. 

The Cabinet Member advised that the proposal would enable the Council to acquire units at a price below that at which it could construct them and the project would also be supported by considerable GLA grant and New Homes Bonus funding.  Other benefits to the Council would include the securing of approximately 100 additional London Affordable Rent units for those on the Council’s housing waiting list.

Summarising, the Cabinet Member confirmed that the project was financially viable and in line with the Council’s Investment and Acquisition Strategy and impending Inclusive Growth Strategy.

Several Cabinet Members spoke in strong support of the proposal and commented on the supporting social and other infrastructure that would need to form part of the development and the wider plans for the area.

Cabinet resolved to:

(i)  Agree the proposal to purchase up to 936 homes, comprising 50% affordable and 50% private housing;

(ii)  Agree to enter into a Development Agreement with Countryside Properties to deliver the units across three development phases for a fixed price plus indexation, on a turn-key basis;

(iii)  Agree to the borrowing of up to £309m within the General Fund to finance the entire development subject to satisfactory due diligence;

(iv)  Note that the scheme meets the Investment and Acquisition Strategy financial performance metrics delivering a positive net present value of £69m;

(v)  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;

(vi)  Agree to allocate £23.1m GLA London Affordable Rent grant funding to support the financial viability of the scheme;

(vii)  Agree to allocate £7.4m GLA Shared Ownership grant funding to support the financial viability of the scheme;

(viii)  Delegate authority to the Chief Operating Officer, in consultation with the Director of Law and Governance, to agree and execute any legal agreements and contract  ...  view the full minutes text for item 34