Purpose

Disposal and Leaseback of two sites, 90 Central Parade and Strand House, to deliver purpose built exempt accommodation units to Care Experienced Young Adults as part of the Council's Housing and Corporate Parenting duty. The proposal delivers improved housing provision along with improved support and care so young adults can live a more independent lives as they get older.

Note: Decision was originally published on Forward Plan, with decision by Executive Mayor and Cabinet, 14th October 2026.  A General Exception Notice, was published in case the decision needed to be taken earlier. The decision was taken at Cabinet.

Decision

For the reasons set out in the report and its appendices, the Executive Mayor and Cabinet AGREED to:

1. 1 Authorise the Corporate Director of Housing, in consultation with the Corporate Director of Resources & S151 Officer and the Director of Legal Services and Monitoring Officer, to advertise the proposed disposal of the Properties where any land comprising or forming part of open space in accordance with section 123(2A) of the Local Government Act 1972.
2. 2 Delegate authority to the Corporate Director of Housing, in consultation with the Corporate Director of Resources and section 151 Officer and the Director of Legal Services and Monitoring Officer, to consider any representations received in response to the statutory advertisement and determine, whether the proposed disposal should proceed.
3. 3 Delegate to Corporate Director of Housing in consultation with Corporate Director of Resources and S151 Officer to exchange the sale agreement of the Council’s freehold interests in 90 Central Parade and Strand House, to Common Projects and M&G Developments (“Investor”) and/or to Special Purpose Vehicles controlled by the Investor. This is subject to the sale agreement warranting that no completion can occur unless and where applicable, the consideration of the responses received in relation to the open space advertisement undertaken by the Council in accordance with section 123(2A) Local Government Act 1972 and following satisfactory, legal financial and commercial due diligence.
4. 4 Delegate to Corporate Director of Housing in consultation with Corporate Director of Resources and S151 Officer to complete the sale agreement of the Council’s freehold interests in 90 Central Parade and Strand House, to Common Projects and M&G Developments (“Investor”) and/or to Special Purpose Vehicles controlled by the Investor. This is subject to, and where applicable, the consideration of the responses received in relation to the open space advertisement undertaken by the Council in accordance with section 123(2A) Local Government Act 1972 and following satisfactory, legal financial and commercial due diligence, and conditional upon receiving planning permission on the terms substantially set out in Part B.
5. 5 Delegate authority to the Corporate Director of Housing in consultation with Corporate Director of Resources and S151 Officer and within Terms set out in Part B to complete the disposal of each property and enter into the corresponding agreement for leases, for headleases, underleases, nomination agreements and ancillary documents only after being satisfied that a) all applicable statutory open space advertisement requirements under s123(2A) Local Government Act 1972 have been complied with and 4 any representations received in relation to this process have been considered; b) satisfactory planning permission has been obtained for the relevant development, without fettering the Council’s independent exercise of its functions as local planning authority; c) satisfactory legal, property, financial and commercial due diligence has been completed; vacant possession, counterparty assurance and contractual protections, together with final confirmation of affordability, value for money and legal approval.
6. 6 to note that the proposal set out in this report can only progress once Common Projects and M&G Developments receive necessary planning approval and the lease can only progress once the Parties reach practical completion in relation to the development. The full planning and development risk remains with the Investor.
7. 7 to delegate to Corporate Director of Housing in consultation with Corporate Director of Resources and S151 Officer to make any immaterial variations or renegotiate Terms, that have a financial impact of less than £0.500m, to the Terms as set out in Part B.
8. 8 to note that the approval to dispose of 90 Central Parade and Strand House has been received at Cabinet under tranche 1 and 2 and approved at Cabinet on May 2023 and December 2024 respectively.