Purpose

By Minute 34 (20 October 2020), the Cabinet
approved the purchase of up to 936 homes from Countryside
Properties as part of the Beam Park regeneration
project.  Since that time the
Development Agreement has been entered into and this report will
present proposed changes to the project and the latest viability
issues, for Cabinet approval.

Content

By Minute 34 (20 October 2020), the Cabinet
approved the purchase of up to 936 homes from Countryside
Properties as part of the Beam Park regeneration
project.  Since that time the
Development Agreement has been entered into and this report will
present proposed changes to the project and the latest viability
issues, for Cabinet approval.

Cabinet resolved
to:
 
(i)  Agree
the viability improvement measures set out in the report to enable
the acquisition of 520 units within Phase 6 of the Beam Park
development (excluding commercial units) from CPUK on a turnkey
basis for an estimated total price of £166.4m and total
scheme cost (including interest) of £183.5m;
 
(ii)  Allocate up to
£36.4m of Right to Buy receipts to ensure positive cashflows
for Phase 6 of the Beam Park development;
 
(iii)  Approve a handover
loan to Reside of £114,356,401 to develop, own, let, sell,
manage and maintain the Phase 6 properties in accordance with the
funding terms set out in the report;
 
(iv)  Note that the
revised proposals for Phase 6 of the Beam Park development meet the
IAS return metrics, producing a Net Present value of
£38,943,950;
 
(v)  Agree to
confirm to CPUK that as the Council was unable to meet the Funding
Condition within the Development Agreement in respect of Phase 7 of
the Beam Park development, the Council was not able to proceed with
the acquisition of properties within that phase; and
 
(vi)  Note that should
additional grant or loan funding be secured which provided a
positive cashflow for Phase 7 of the Beam Park development, a
further report would be submitted to Cabinet.