Decision details

To request authority to vary a contract in respect of an Overarching Hybrid Development Agreement to redevelop land known as Ujima House and land on the East of Cecil Avenue and High Road, Wembley made between (1) the Mayor and Burgesses of the London Borough of Brent (2) Wates Construction Limited (3) Wates Group Limited.

That the Corporate Director Neighbourhoods and Regeneration:

i)               Approves the variation of the contract in respect of an Overarching Hybrid Development Agreement (Wembley Housing Zone) with Wates Construction Limited and Wates Group Limited as follows:

a.    Wates to enter into a subcontract and appoint Red Loft as Sales and Marketing Agent for the Wembley Housing Zone, to provide sales and marketing services to facilitate long leasehold disposal of the 50 Shared Ownership Flats on the Ujima House and Cecil Avenue sites, in the sum of up to £384,050.

The Council entered into a contract for a contractor developer to redevelop the land known as Ujima House, 388 High Road, Wembley, and land on the East of Cecil Avenue and High Road, Wembley, with Wates Construction Limited and Wates Group Limited on 13 March 2023.

Officers have concluded that the Contract requires a variation as follows:

a)    Wates to enter into a subcontract and appoint Red Loft as Sales and Marketing Agent for the Wembley Housing Zone, to provide sales and marketing services to facilitate long leasehold disposal of the 50 Shared Ownership Flats on the Ujima House and Cecil Avenue sites.

The Infrastructure and Regeneration Partnership Board reviewed options analyses for the 50 Shared Ownership flats currently under construction on the Wembley Housing Zone and endorsed the preferred option to appoint an agent to market and sell the Wembley Housing Zone 50 Shared ownership flats on behalf of the Council. Following due diligence and market testing to ensure value for money, it is proposed that endorsed option 1 is progressed and the existing contract with Wates Construction Limited and Wates Group Limited is varied for Wates’ to enter into a subcontract and appoint Red Loft as Sales and Marketing Agent to provide sales and marketing services to facilitate long leasehold disposal of the Wembley Housing Zone 50 Shared Ownership flats.

Other options considered and discounted included building in-house capacity to market and sell Shared Ownership flats, to flip the Shared ownership flats to London Affordable Rent, to dispose the Shared Ownership flats to a Registered Provider, or to do nothing.

None.