Purpose

Cabinet will consider the proposed development
agreement for Huguenot House and the appointment of a delivery
partner.

Decision

Cabinet approved the
following recommendations:

·      
Noted the outcome of the competitive procurement process

·      
Approved the Full Business Case for the redevelopment of Huguenot
House via a development agreement with headlease.

·      
Approved that, subject to: (a) the valuation report to be produced
by the Council’s appointed valuer to verify that the Council
is disposing of land in accordance with its legal powers to do so,
as further detailed in paragraphs 10.1 to 10.3 (the
“Valuation Report”) confirming that the Council is
disposing of land at the best consideration reasonably obtainable;
and (b) refinement and finalisation of the terms of the development
agreement, the Council enters into a development agreement with
Altius Real Estate Limited Erith Contractors Limited

·      
Approved that, subject to (a) the Valuation Report confirming that
the Council is disposing of land at the best consideration
reasonably obtainable; and (b) the conditions precedent in the
development agreement being satisfied, the Council grants a 250
year lease of the Property to Altius prior to commencement of
development;

·      
Delegated authority to the Executive Director of Finance &
Resources, following consultation with the Executive Director of
Corporate Services to: (a) review the valuation report to be
produced by the Council’s appointed valuer to verify that the
Council is disposing of land in accordance with its legal powers to
do so; (b) refine, finalise and authorise exchange of contracts of
the Development Agreement; (c) agree terms of any ancillary
documents which need to be agreed in advance of entering into the
Development Agreement, or subsequently (d) refine, finalise and
give approval for the Council to enter into the planning overage
deed and development profit overage deed with Altius and Erith as
Guarantor, (or such other Guarantor as the Director of Finance and
Resources may approve) simultaneously with the grant of the 250
year lease of the Property; and (e) confirm that the conditions
precedent in the development agreement have been satisfied and
authorise completion of the 250 year lease with Altius; (f) take
any other action or decision needed to give effect to or facilitate
the recommendations

·      
Noted the revised capital spend forecast of £30.046m based on
the recommended delivery route.
 
Reasons for Decision: As an ageing
investment asset Huguenot House risks the instability of future
financial return without meaningful intervention. The redevelopment
of Huguenot House will enable the Council to meet its commitments
to the Fairer Westminster strategy, through meeting the housing
needs of residents through the provision of greener and more
affordable housing, and the provision of contemporary leisure and
commercial facilities,