Decision details

To seek approval for Brent Council to enter into a Deed of Variation to an Agreement for Lease and Development in relation to Peel South Kilburn, dated 31 July 2018 and Deed of Variation to a Lease relating to Phase 4, Peel South Kilburn dated 29 June 2023 to allow the developer to sell 48 Private units in Core D1 Peel Phase 4 to a Private Rented Sector (PRS) operator.

That the Corporate Director Neighbourhoods and Regeneration, in consultation with the Cabinet Member for Regeneration, Planning and Property:

i)               Approves entering into a Deed of Variation to the Agreement for Lease and Development in relation to Peel South Kilburn dated 31 July 2018 and a Deed of Variation to Lease Phase 4 South Kilburn dated 29 June 2023 to facilitate sale of private units to a PRS operator.

ii)              To note the benefits of the sale including accelerated construction programme and early payment of land receipt to the Council. Other benefits include de-risking the continued delivery of the project and delivering the strategic objective of a mixed tenure community.

The variations are required to allow the developer to grant an underlease of 48 private units to a PRS operator. The PRS sale is a positive development for local South Kilburn partners and neighbours. It is set to fast-track construction time scales by 10 months, accelerating the delivery from November 2026 to January 2026. The period of live construction will be shortened for those living and working nearby, minimising noise, dust and general inconvenience. The development’s C3 planning classification fully supports PRS use, eliminating any potential planning issues. All sales overage obligations under the Peel Development Agreement have been fully settled, removing any future implications.

The accelerated construction time-scale will also accelerate the Land Payment due to the Council on achieving Practical Completion Peel Phase 4.

The developer has advised that the London sales market continues to be challenging with sales rates lower than anticipated for all developers, so the potential of a bulk sale to a PRS operator to help mitigate sales rates and maintain their construction pace was seen as a beneficial option. The remaining 38 unsold units within Peel Phase 4 Core D1 would remain as Private Market Units for open market sales. To make management practical and appealing, there is a need to grant an underlease comprising the 48 private units to the PRS operator.

None.