Content

Declarations of
interest for this item:
 
None
 
RESOLVED:
 
That Cabinet:

 
1.   
Noted that the Compulsory Purchase Order granted in March 2020
would expire through effluxion of time on 12th December
2025.

2.   
Agreed that the Director of Capital Projects and Property in
consultation with the Corporate Director of Finance and Resources
and the Director of Placemaking and Community Development prepares
the Wards Corner Property Strategy, having regard to LBH’s
strategic ambitions for the South Tottenham area.

3.   
Agreed that the Director of Capital Projects and Property in
consultation with the Corporate Director of Finance and Resources
prepares the Wards Corner Asset Management Plan

4.   
Agreed to co-operate with Places for London in respect of its
future long term plans for its holdings
within the wider site.
 
 
Reasons for
Decision
 
In July 2022 Cabinet resolved to acquire 36
Wards Corner property interests comprising a mix of freehold and
leasehold land, commercial property and residential assets from
Grainger PLC (“Grainger”) under an option agreement
contained within the development agreement between LBH and
Grainger. Grainger had notified LBH that its plans for the
comprehensive development of the whole Wards Corner site were
unviable and this agreement allowed Grainger to terminate its
involvement on grounds of lack of development viability. LBH
undertook its own analysis which confirmed this lack of
viability.
 
LBH also undertook analysis on alternative
schemes that would comprise only the property interests under its
control and those that could be acquired under the London Borough
of Haringey (Wards Corner Regeneration Project) Compulsory Purchase
Order 2016 (CPO) (so, excluding the properties owned by Places for
London (“Places”)). The modelling of both the more
comprehensive and more conservative alternative variants generated
significant losses from development activity.
 
The Wards Corner scheme was removed from
LBH’s Capital Programme in March 2024. At that time it was deemed that a comprehensive
redevelopment was not financially viable
and it should be removed until more detailed plans come forward
that might prove viable.
 
LBH undertook revised development viability
studies via its specialist advisor BNP Paribas (“BNP”)
in early 2025. This updated analysis pointed to potentially greater
losses upon redevelopment than at the time of the LBH acquisition
of the Grainger interests.
 
The Wards Corner Asset Management Plan will
enable estate management activity to be focussed upon maximising
long term income from the LBH commercial assets on West Green Road
and Seven Sisters Road, whilst also encouraging, through tenant
incentives where necessary, work to be carried out to assist in
improving the appearance of this important entrance point to the
borough and removing some of the blight that impacts on Seven
Sisters as an important town centre and transport hub.
 
In respect of the Suffield Road and High Road
residential properties, this Asset Management Plan will also enable
LBH to incorporate these assets within its Housing Delivery
Programme, to refurbish to provide temporary accommodation or to
generate capital receipts from disposal (or a mixture of each of
these outcomes).
 
LBH
is working
closely with Places in respect of both parties’ desired outcome for the
future of the Wards Corner site. The
recently constructed and opened
Seven Sisters Market is an example of
such co-operation. This market facility
will continue to operate under
its current
lease while
long term plans are being formulated in
respect of the buildings owned by
Places.
 
Alternative Options
Considered
 
The alternative option is to
continue to lease the commercial properties on a short term basis and to keep the currently vacant
residential units unoccupied. This strategy, pending a future
comprehensive redevelopment that might never become viable, will
serve to deny LBH the ability to maximise revenue streams/capital
receipts and remove some of the blight that affects Seven Sisters
as an important gateway site.