Issue - meetings

This report seeks permission to purchase the long leasehold interests of 999 years (less 3 days) in 294 homes (flats) located on the former Euro Car Parts site, Fulton Road, Wembley, HA9 0TF.

Cabinet RESOLVED:

1)          To approve a budget of £85.6m plus VAT (if any) to purchase the long leasehold interest in 294 homes from Crown Wembley LP, subject to contract and subject to a) clean and marketable title b) financial and legal due diligence and c) vacant possession, with a target completion date in March 2023.

2)          To delegate authority to the Corporate Director of Finance & Resources in consultation with the Finance, Resources & Reform to negotiate and agree the terms and thereafter enter a development sale and purchase contract with the vendor for the purchase of these homes by way of a long lease of 999 years (less 3 days).

3)          To note the Corporate Director, Finance & Resources using powers delegated under the Constitution would tender and award relevant contracts for professional services relating to the construction supervision of the 294 homes that would be transferred to Brent Council.

4)          To delegate authority to the Corporate Director, Resident Services to enter into a grant agreement with the Greater London Authority (GLA) for purchase of the Section 106 block of apartments at Fulton Road in the sum of £8.2m.

5)          To delegate authority to the Corporate Director of Finance & Resources in consultation with the Cabinet Member for Finance, Resources & Reform to secure the necessary pre-requisite consents and thereafter agree the terms for entering a lease of the 118 units to a Council owned subsidiary.

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance, Resources & Reform) introduced a report seeking permission to the purchase of a long leasehold interest in 294 homes (flats) located on the former Euro Car Parks site, Fulton Road, Wembley.

In considering the report, Cabinet was advised that the development on the former Euro Car Parks site, Fulton Road (for which planning permission had been granted in March 2022) comprised a mixed-use delivering retail space, industrial floorspace and housing.  As a result of the developer seeking a buyer for 294 of the homes, an in-principle agreement had been reached with the Council for their purchase based on the breakdown of affordable housing units as detailed within section 3.2 of the report. 

Members noted that the purchase of the blocks identified would represent an increase in the original level of affordable housing and improvement in the tenure(s) available as part of the development proposals, which would assist in meeting current levels of housing demand across the breakdown of units identified.  As part of the funding package to support the purchase the Council had also submitted an application to the GLA for £8.2m grant funding, which reflected the overall percentage of affordable housing being provided.

In supporting the proposed acquisitions, Members were keen to recognise the ongoing work being undertaken to support households who were either homeless, at risk of homelessness or in housing need and in terms of increasing the supply of safe, secure and appropriately sized affordable accommodation across the borough, working in partnership with the GLA and other key stakeholders.

As a result, Cabinet RESOLVED:

(1)    To approve a budget of £85.6m plus VAT (if any) to purchase the long leasehold interest in 294 homes from Crown Wembley LP, subject to contract and subject to a) clean and marketable title b) financial and legal due diligence and c) vacant possession, with a target completion date in March 2023.

(2)    To delegate authority to the Corporate Director of Finance & Resources in consultation with the Finance, Resources & Reform to negotiate and agree the terms and thereafter enter a development sale and purchase contract with the vendor for the purchase of these homes by way of a long lease of 999 years (less 3 days).

(3)    To note the Corporate Director, Finance & Resources using powers delegated under the Constitution would tender and award relevant contracts for professional services relating to the construction supervision of the 294 homes that would be transferred to Brent Council.

(4)    To delegate authority to the Corporate Director, Resident Services to enter into a grant agreement with the Greater London Authority (GLA) for purchase of the Section 106 block of apartments at Fulton Road in the sum of £8.2m.

(5)    To delegate authority to the Corporate Director of Finance & Resources in consultation with the Cabinet Member for Finance, Resources & Reform to secure the necessary pre-requisite consents and thereafter agree the terms for entering a lease of the 118 units to a Council owned subsidiary.