Purpose

This report seeks approval for Camden to exercise
pre-emption rights (subject to contract) under its Development
Agreement contract with the Council’s private This report
seeks approval for Camden to exercise pre-emption rights (subject
to contract) under its Development Agreement contract with the
Council’s private development partner, Mount Anvil, at the
Bacton Phase 2 development for the purchase of 46
social rent homes and 10 intermediate rent homes from Mount Anvil.
The pre-emption rights allow the Council the opportunity to
purchase certain units based on pre-agreed mechanisms set out in
the Development Agreement, which were arrived at based on valuation
evidence. The purchase will be funded using Greater London
Authority grant funding. It is proposed that post acquisition the
46 social rent homes will be managed in the Housing Revenue
Account.
 
The purchase will increase affordable housing provision in
the borough and provide more social rent homes to accommodate
Council tenants living in the first phase of the Wendling and St
Stephen’s Close Estate redevelopment.
 
The current intention is that the Council would make a
subsequent decision to dispose of the 10 intermediate homes to
Camden Living Group, the Council’s wholly owned group of
housing companies (specifically Camden Living Social Offer, the
Camden Living subsidiary company which is seeking registered
provider status. Any such subsequent Council decision would need to
demonstrate (based on professional valuation advice) that the sale
price represented best consideration reasonably obtainable for the
Council at the time of the disposal to Camden Living. Camden
Living’s acquisition of the units would be contingent upon
its board making its own independent decision (having regard to
advice from their own valuation advisers) that the acquisition
represented value for money and was in the overall interests of the
company.
 
In terms of the recommendations in this report, the number
of homes available for purchase and the accommodation mix may be
subject to change as the scheme design develops further and
progresses towards planning application submission in early 2025.
This may alter the final purchase price and / or the
Council’s borrowing and / or grant requirement on the
scheme.
 
The purchase will be subject to the terms to be agreed in
an Affordable Housing Development Agreement between Camden and
Mount Anvil in late 2024 (as well as accompanying due diligence and
valuation). This will include the Affordable Housing Development
Agreement being conditional upon the satisfaction of all Conditions
Precedent in the main Development Agreement between the two
parties. Once the terms of the Affordable Housing Development
Agreement have been finalised, the matter will be reported to the
Director of Development who will seek internal and external legal
advice, Finance and Procurement advice before authorising the
Council to enter into the Affordable Housing Development Agreement
with Mount Anvil. This is permitted under the Director of
Development’s existing delegated authority to progress and
implement the main Development Agreement and project Delivery
Strategy.

Content

RESOLVED –
 
THAT, following consultation with the
Cabinet Member for New Homes and Community Investment, Cabinet
Member for Better Homes, Cabinet Member for Finance and Cost of
Living, the Executive Director of Corporate Services and the
Borough Solicitor, the following be agreed:
 

(i)        
Exercise of a pre-emption right to enable the Council’s
purchase of 46 social rent homes at the Bacton Phase 2
development in Gospel Oak, from the Council’s private
development partner, Mount Anvil, using Greater London Authority
grant funding, to be managed as social rent homes in the Housing
Revenue Account; and
 

(ii)       
Exercise of a pre-emption right to enable the Council’s
purchase of 10 intermediate rent homes from Mount Anvil using
Greater London Authority grant funding.