Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: July 14, 2025

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

Content: 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,