Agenda item

Purchase of a S.106 block of apartments at the Telford Homes Alperton Bus Garage Development

This report seeks permission to purchase the long leasehold interest in 155 affordable rented homes (flats) at the Alperton Bus Garage site located in 330 Ealing Road, Alperton. The scheme is currently in development with an estimated practical completion date of Q3 2024 for the affordable rented homes.

Decision:

Cabinet RESOLVED to delegate authority to the Director of Finance in consultation with the Lead Member for Finance and the Operational Director of Property and Assets to negotiate and agree the terms and thereafter enter into a 50 year under lease (to be made between L.B. Brent and Asset SPV) in respect of the 155 affordable homes within the Alperton Bus Garage Development subject to:

 

(a)     clean and marketable title;

 

(b)     financial and legal due diligence;

 

(c)     all commercial terms having been agreed between the parties; and

 

(d)     vacant possession, with a target completion date as soon as possible after the grant of the long lease of 999 years (the headlease).

Minutes:

Councillor McLennan, Deputy Leader and Lead Member for Resources, introduced a report seeking approval to purchase a long leasehold interest in 155 affordable rented homes (flats) at the Alperton Bus Garage site, located at 330 Ealing Road, Alperton. 

 

Cabinet noted that the scheme was currently in development with an estimated practical completion of Quarter 3 2024 for the affordable rented homes element.  In order to finance purchase of the block it was proposed that the Council take a lease of 50 years from an Asset Special Purpose Vehicle (ASPV).  This would be on the basis of current social rents and upon completion a reversionary 949 year lease would be granted at nil or peppercorn rent with the developer continuing to insure the premises during the construction and until completion of the contract.

 

In considering the report members were advised that the size and breakdown of the affordable homes would assist in addressing current housing needs at a location considered to be beneficial.  As further assurance, confirmation was also provided that the Council would be employing their own professional services team to ensure that the quality and progression of the build met required standards.

 

In expressing their support for the proposal, Cabinet highlighted the opportunity the scheme provided to further increase the supply of affordable social housing within the borough based on a leasing model which was felt to represent good value for money.  Officers were thanked for their efforts in securing the necessary terms as a means of providing additional high quality affordable homes offering secure tenancies.

 

As a result of the discussion and having noted the information provided within the exempt appendices of the report, Cabinet RESOLVED to delegate authority to the Director of Finance in consultation with the Lead Member for Finance and the Operational Director of Property and Assets to negotiate and agree the terms and thereafter enter into a 50 year under lease (to be made between L.B. Brent and Asset SPV) in respect of the 155 affordable homes within the Alperton Bus Garage Development subject to:

 

(a)     clean and marketable title;

 

(b)     financial and legal due diligence;

 

(c)     all commercial terms having been agreed between the parties; and

 

(d)     vacant possession, with a target completion date as soon as possible after the grant of the long lease of 999 years (the headlease).

Supporting documents: