Decision details

To seek approval for Brent Council to enter into a Deed of Variation to an Agreement for Lease and Development Agreement in relation to Peel South Kilburn, dated 31 July 2018, Deed of Variation to a Lease relating to Phase 4, Peel South Kilburn dated 29 June 2023 and the Licence to Underlet  to allow the developer (Countryside Properties (UK) Limited ) 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 and Planning:

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 (“The Agreement”), a Deed of Variation to the Lease Phase 4 South Kilburn dated 29 June 2023, and the Licence to Underlet to facilitate sale of private units to a Private Rented Sector (PRS) Operator.

The South Kilburn Estate Regeneration Programme is an important project to deliver improved homes, introduce new tenures of housing, and improve the physical and social infrastructure in the area for existing and future residents. It directly addresses local housing needs and contributes to sustainable growth, economic stability and community wellbeing.

The Peel Scheme is set out in the South Kilburn Masterplan Phase 3a as a mixed tenure housing development which is being delivered over four phases. Phases 1 – 3 have completed. Phase 4 works have commenced and are expected to complete in June 2026 to provide 328 homes, 43% of which will be affordable homes.

The developer, Countryside Properties (UK) Limited, have advised Brent that the London sales market continues to be challenging, with sales rates lower than anticipated for all developments, and have been exploring the potential of a bulk sale to a Private Rented Sector (PRS) operator to help mitigate decreased sales rates and maintain their construction pace.

Countryside have introduced a significant and growing PRS operator, Principal Asset Management,  interested in purchasing 48 private market units in Peel Phase 4 Core D1, with the remaining 38 unsold units as Private Market units for open market sales. In order to proceed, Countryside require the following legal documents to be completed with Brent Council:

·       Peel Phase 4 Deed of Variation to the Agreement for Lease and Development in relation to Peel South Kilburn dated 31 July 2018

·       Deed of Variation to the Peel Phase 4 Lease dated 29 June 2023.

·       Licence to Underlet to allow Countryside to grant an underlease of the 48 private units to Principal Asset Management.

These variations are required to allow Countryside to grant an underlease of the 48 private units to the PRS operator from Countryside’s headlease. Currently, Countryside can only grant individual plot leases.

The benefits to Brent Council from the sale of the 38 PRS units is a positive for local South Kilburn partners and neighbours, as it will fast-track construction timescales by 6 months, accelerating the delivery of Phase 4 to June 2026. The period of a live construction site will be shortened for those living and working nearby. The earlier completion will also accelerate the release of the Land Payment of £13,797,451.00 due to the Council on achieving Practical Completion of Peel Phase 4.

The proposal has no direct accounting implications for Brent but allows Brent to realise the financial benefits of the scheme.

The variations are required to allow Countryside to grant an underlease of the 48 private units to Principle Asset Management from Countryside’s headlease. Currently, Countryside can only grant individual plot leases.

None.