Decision details
Authority to enter into contract for the purchase of 294 Homes at Fulton Road, Wembley
Decision Maker: Corporate Director of Finance & Resources
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
To request approval for the Council to enter into a Developer Agreement, Lease Agreement and Lease in relation to the purchase of 294 homes at Fulton Road, Wembley
Decision:
That the Corporate Director Finance and Resources, in consultation with the Cabinet Member for Finance, Resources and Reform:
i) Approves entry into
a. an agreement for leases with Crown Venture GP LLP and Crown Venture Nominee Limited
b. a development funding agreement with Regal Homes Management Limited as the developer and Crown Venture GP LLP and Crown Venture Nominee Limited as Seller
for the purchase of a 999-year leasehold interest (less 3 days) in 294 homes (flats) located eon the former Euro Car Parks site, Fulton Road, Wembley, HA9 0TF.
ii) Notes that under the contract referred to in (i) above, the payment terms agreed with the developer / seller are as follows:
· 22.5% payable upon delivery of ‘golden brick’ milestone for Block E - £21.55m
· 12.5% payable upon delivery of ‘golden brick’ milestone for Block D - £8.039m
· 65% to be payable via monthly valuations - £54.951m
Reasons for the decision:
As detailed within the accompanying report.
Alternative options considered:
As detailed within the accompanying report.
Interests and Nature of Interests Declared:
None.
Reason Key: Signficant expenditure/savings of £500k or more;
Wards Affected: Wembley Park;
Cabinet/Committee Decision or Scheme of Delegation: Delegated authority - In February 2023, Cabinet approved the purchase of a long 999-year leasehold interest (less 3 days) in 294 homes (flats) located on the former Euro Car Parts site, Fulton Road, Wembley, HA9 0TF. As part of this approval, Cabinet delegated authority to Corporate Director of Finance & Resources in consultation with the Cabinet Member for Finance, Resources & Reform to negotiate, agree the terms and thereafter enter into an agreement for leases and a development funding agreement. The agreement will enable the Council to purchase the 294 homes by way of a long lease of 999 years (less 3 days).
Parties Consulted: The February 2023 Cabinet paper that sought approval to acquire the 294 homes was circulated to all ward members. Follow up consultation with the Cabinet Member for Finance, Resources and Reform has taken place prior to making this decision. As part of the Council's construction supervision of this site, further engagement will be undertaken with ward members and key stakeholders to address any issues as / when necessary.
Contact: Tanveer Ghani, Director - Property and Assets Email: tanveer.ghani@brent.gov.uk Tel: 020 8937 1722.
Publication date: 17/03/2023
Date of decision: 17/03/2023
Effective from: 25/03/2023
Accompanying Documents:
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