Purpose

Seeking decision on the final
phase of the Woolwich Estates programme

Content

Agreed
to continue with the development of the Maryon Road and Maryon
Grove site (part of the former Woolwich Estates) pursuant to the
Development Agreement in place noting the intent to vary the tenure
mix as set out in para 4.17 of this report which shows 50% of the
homes will be affordable across the three ‘Woolwich
Estates’ schemes.
 
Noted
that the Paragon Asra Housing Limited's Shared
Ownership Units on Morris South, Maryon
Road and Maryon Grove will become
social rented homes and will be subject
to the Council’s nomination agreement.
 
Noted, Currie & Brown, on the Council’s behalf, have
undertaken a due diligence review of Lovell Partnerships
Limited’s viability and underlying assumptions as part of the
options assessment. The approach and assumptions were found to be
reasonable.
 
Delegated
authority to the Director of Regeneration,
Enterprise and Skills to enter into a Deed of Variation (and/or
such other legal documentation as may be required) to amend the
Development Agreement so as to:

·       
change the tenure mix as proposed;

·       
reinstate an overage[1] provision for this
phase;

·       
make use of an updated financial model to ascertain
viability and land value; and

·       
undertake a viability assessment to consider the
Council purchasing the private sale units, and if viable, authority
to acquire these properties.
 
Noted
the varied tenure mix proposed in this report will
result in a reduction in the number of units to be received by the
Council from that agreed by Cabinet in July 2022, with a
corresponding decrease in the price payable of
c£10m. 
 
Noted
that this will ensure timely delivery of the new
Council and Registered Provider homes and facilitates the creation
of mixed and balanced communities at Maryon Road and Maryon
Grove.
 

[1] Overage is a contractual
mechanism that will allow the Council to benefit from any future
increase in the value from the sale of units.