Purpose

The Council is seeking to
acquire 73 units at Zodiac Court, London Road in West Croydon. The
residential units will be used for Temporary Accommodation and will
be held in the HRA.
 
The report will seek approval
to acquire the freehold of the building subject to completion of
all necessary legal and property due diligence.
 

Content

The Executive Mayor and Cabinet
RESOLVED;  
 
2.1 To approve that the Council
acquire Zodiac House, which consists of 73 residential units, at
the value stated the Part B report; and enters into an agreement
for lease and a 999-year lease with the developer (Zodiac II
Limited).
 
2.2 To approve that the Council
acquire the associated public garden space and Community building,
at the value stated in the Part B report, once all works related to
the site are completed by the developer and the developer has found
a suitable community group tenant for the community building; and
enter into an agreement for lease and a lease for 999 Years with
the developer (Zodiac II Limited), which will be subject to an
underlease assigned to a community group tenant.
 
2.3 To approve that the Council
enter into any other associated and ancillary agreements or
documents to give effect to the recommendations set out in this
report and to comply with the terms of the leases, including as
follows: • Deed of covenant regarding the adjacent party wall
rights; • Third party rights letters regarding the
construction contracts; and • Capital Allowance Election
regarding tax election to HMRC.
 
2.4 To approve that the Council
draws down up to £5.1m from the Local Authority Housing Fund
Round 3 (LAHFR3) to help fund this acquisition.
 
2.5 To approve the use of Right
to Buy monies for acquisition of Zodiac House as detailed within
this report.