Decision details

This decision confirms approval of the final terms for the Council to acquire the freehold of the Falcon Public House site situated on Kilburn Lane from Londonewcastle (QP2) LLP in order to assist with the ongoing regeneration of the South Kilburn Housing estate to deliver much needed affordable housing. 

A Key Officer Decision Report was approved on 15 April 2024 for a maximum purchase price for the Falcon Public House.  Brent Council and Londonewcastle (QP2) LLP have reached agreement on the value of the Falcon Public House within the maximum sum and authority is therefore sought to proceed with the acquisition.

To approve acquisition of the freehold of the Falcon Public House site, located on Kilburn Lane from Londonewcastle (QP2) LLP on the terms agreed in the sum of £3,250,000 ex VAT.

At its meeting on 14 October 2019, Cabinet resolved to terminate the South Kilburn Queens Park LLP Project Agreement and Members Agreement (“SKQP Agreement”) by 30 October 2019, if an agreement on outstanding conditions precedent could not be reached between the Council and LN.

Additionally, Cabinet resolved that, contingent upon the termination of the SKQP Agreement, the Council should enter into an option agreement for the acquisition of the Falcon Public House site situated on Kilburn Lane (the “Site”) from Londonewcastle (QP2) LLP (“LN”).  The authority to exercise this option and negotiate terms for the acquisition of the Site was delegated to the Strategic Director of Regeneration and Environment (now Corporate Director of Neighbourhoods and Regeneration), in consultation with the Cabinet Member for Regeneration, Property, and Planning (now the Cabinet Member for Regeneration, Planning and Growth).

The Council and LN have reached a mutual agreement on the valuation of the Falcon Pub on 19 April 2024.

Given Cabinet’s requirements to terminate the SKQP Agreement and enter into an option agreement for the purchase of the Falcon Public House officers are required to pursue the purchase of the Falcon Public House.

Officers have attempted on a number of occasions to agree a purchase price for the Falcon Public House with LN.  Only when it was not possible at the time to agree the purchase price, did officers refer the matter to arbitration as stipulated in the Option Agreement. During the arbitration, Officers continued to make attempts to agree a purchase price.

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