Purpose

This report seeks approval to grant a 999-year lease to Higgins Partnerships 1961 plc (Higgins), in accordance with the Development Agreement entered into between the Council and Higgins on 30 April 2025, for Phase 1 of the redevelopment. This relates to Block B5, which will deliver 63 Extra Care homes.

Completion of the lease will be subject to the relevant Conditions Precedent and other lease completion requirements under the Development Agreement having been satisfied or waived in accordance with its terms.

Decision

(1)  Subject to the relevant Conditions Precedent and other lease completion requirements under the Development Agreement having been satisfied or waived in accordance with its terms, to approve the grant of a 999-year lease of Phase 1 of Somerleyton Road Phase 2 to Higgins Partnerships 1961 plc, in accordance with the Development Agreement dated 30 April 2025.

(2)  To approve and execute the Phase 1 Step-In Agreement with Higgins Partnerships 1961 plc, Higgins Group plc, Housing 21 and the Approved Funder, in accordance with the requirements of the Development Agreement.

(3)  To note that £2m of Pre-Development Costs is payable to the Council on completion of the Phase 1 lease, with the remaining £3m payable six months following the Phase 1 Lease Completion Date.