Decision Maker:

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 21, 2025

Purpose:

Content: RESOLVED:   That Cabinet: Approved the scheme for Climate, Homes & Economy Directorate as set out in section 11 of the report:   1.  Approve the Hackney Downs Park Basketball Courts and Multi Use Games Area (MUGA) refurbishment: Resource and spend approval of £105k in 2025/26 is requested to go towards the upgrade to the basketball courts and MUGA at this site.   2.  Approve that the scheme for Children & Education Directorate as set out in section 11 of the report:   3.  Approve that Shacklewell Primary School Roof Replacement and Solar Installation: Resource and spend approval of £120k in 2025/26 is requested to fund the recovery of the roof, associated works to the pitched windows and northlights, the installation of a guardrail and the installation of a photovoltaic (PV) solar system at this site.   4.  Note the Capital Final Outturn for 2024/25 as set out in section 12 of the report.  5.  Authorise the disposal of 18 London Lane, 20 London Lane, and 13a Englefield Road, shown for identification purposes only edged red on the plan at Appendix 1.   6.  Authorise the disposal of part of Public Library Record Centre and Archives Store, Roseberry Place and Beechwood Road, Hackney, London (E8 3DG), (also known as, and referred to in this report as, 14 Dalston Lane), shown for identification purposes only edged red on the plan at Appendix 2.   7.  Authorise the disposal of the Land at Pearson Street shown for identification purposes only edged red on the plan at Appendix 3.   8.  Delegates authority to the Group Director of Finance to agree all commercial terms of the transactions.   9.  Delegates authority to the Director of Legal, Democratic and Electoral Services to settle, agree and enter into all documentation necessary for the transactions.   10.Approve the granting of a new lease of fifteen years of the ground floor and basement of 96–98 Leonard Street EC2 to Disco Wheel Ltd, incorporating the proposed Heads of Terms, shown for identification purposes only edged red on the plan at Appendix 4, (subject to any reasonable amendments during the legal process), to secure occupation and generate income for the General Fund.   11.Delegates to the Group Director of Finance and the Director of Strategic Property Services the authority to agree the final lease terms and associated documentation, ensuring that the letting represents best consideration.   12.Delegates authority to the Director of Legal, Democratic and Electoral Services  to complete the lease and any other relevant or ancillary legal documents arising thereto on behalf of the Council.   13.Authorise the purchase of 161 Queen's Drive, N4 2AR, shown for identification purposes only edged red on the plan at Appendix 6.   14.Delegates authority to the Group Director of Finance, in consultation with the Director of Strategic Property Services to negotiate all commercial terms and agree the purchase of 161 Queen’s Drive, N4 2AR as shown in Appendix 7 which is Exempt from publication.    15.Stamp duty (SDLT) due be paid on the purchases (if applicable).   16.Authorise the Director of Legal, Democratic and Electoral Services to prepare, agree, settle and sign the necessary legal documentation to effect the proposals contained in this report and to enter into any other ancillary legal documentation as required.   REASONS FOR DECISION:   The decisions required are necessary in order that the schemes within the Council’s approved Capital programme can be delivered and necessary to approve the property proposals as set out in this report.   In most cases resources have already been allocated to the capital schemes as part of the budget setting exercise but spending approval is required in order for the scheme to proceed. Where, however, resources have not previously been allocated, resource approval is requested in this report.   To facilitate financial management and control of the Council's finances.   Proposed disposal of three general fund assets 18-20 London Lane (including 13a Englefield Road), 14 Dalston Lane and Land at Pearson Street: Retaining these properties in the Commercial portfolio no longer represents best use  and their sale offers potential for the Council to utilise capital receipts, with the appropriate permissions, to fund invest to save and transformational revenue spend. These buildings are expected to generate significant interest if they were to be offered to the market on a freehold or long leasehold basis. In the case of Land at Pearson Street, it is anticipated that the long leaseholder may seek to purchase the freehold as a special purchaser.   These are also  examples of assets that the Council could dispose of relatively quickly, without the need for relocations or wide consultation that might be the case for some VCS (Voluntary and Community Sector) assets, and where there is either no immediate loss of commercial income, or (in the case of 18-20 London Lane) where there is a likelihood of a void in approximately 12 months time.   18-20 London Lane and 14 Dalston Lane will be offered to the market for sale or on the basis of a standard commercial lease, so that if a strong commercial letting proposal is received, the Council can still consider this, and determine alternative assets for disposal to meet the requirement for capital receipts.   Proposed Lease of Ground Floor and Basement of 96-98 Leonard Street EC2: Letting the property to Disco Wheel Ltd on these terms will secure a new tenant for a currently vacant Council asset, bringing it back into productive use and generating income for the General Fund.   The proposed rent level and broader terms are in line with commercial market expectations and the tenant’s proposed investment plans will improve the premises.   Proposed purchase of 161 Queen’s Drive, N4 2AR: There is a significant need to increase the provision of temporary accommodation in the Borough. As set out within Part 7 of the Housing Act 1996, the Council has a statutory duty to provide interim temporary accommodation to homeless persons/households to whom it appears to have a duty to provide permanent housing.   Currently, meeting this statutory duty requires using expensive nightly-paid and/or spot-purchased accommodation, as well as accommodation outside of the Borough. The acquisition of this property adds 34 units to the amount available for temporary accommodation within Hackney and within the Council’s ownership. These units will provide accommodation for the most highly-supported single residents who are in need of temporary accommodation.    DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED:   Proposed disposal of three general fund assets 18-20 London Lane (including 13a Englefield Road), 14 Dalston Lane and Land at Pearson Street:   No action. This option has been rejected because the building at 14 Dalston Lane is vacant and incurring substantial void costs to the Council, and 18-20 London Lane is currently anticipated to be vacated in approximately one year. In any event, the Council needs to secure capital receipts and can not do this without taking properties forward for disposal.   Market only on a standard commercial lease basis. This option has been rejected for 18-20 London Lane and 14 Dalston Lane because the Council needs to identify capital receipts from commercial property disposals and these buildings could present viable opportunities to support this and offer better value to the Council.. This option is not applicable to Land at Pearson St because the asset is already subject to a leasehold interest.   Market only for sale. In respect of 18-20 London Lane and 14 Dalston Lane, this option has been rejected because by offering the properties for sale or lease, the Council loses nothing but gains insight on what the financial bottom line and other impacts will be from both options.   Other corporate objectives. In respect of 18-20 London Lane and 14 Dalston Lane, there is a high risk that planning consent would not be achieved in the short/ medium term for conversion to residential use, including temporary accommodation and specialised supported housing. A developer might be able to take a longer term view on this, but it is not viable for the Council to hold very costly and high value buildings in such a speculative way.   The Council does not have direct control over the land at Pearson Street due to the existing long leasehold interest, so can not make plans to use it.   Retain the freehold of the Land at Pearson Street and consider attempting to agree a surrender of the long leasehold interest in order to obtain control of the land. This option has been rejected at this stage because a transaction of this type would require the Council to pay a reverse premium capital sum at a time when it is seeking capital receipts. Even then, the land would be subject to the irregular boundary on the west side, unless the Council could also secure an acquisition of that strip of land. The Council would then have responsibility to secure and / or let out the site, which we know has been challenging for Places for London for many years, with associated void costs and liabilities. Notwithstanding this, the Council could reconsider this option if acceptable terms for the disposal of the freehold interest can not be reached.   Proposed Lease of Ground Floor and Basement of 96-98 Leonard Street EC2: The Council could also have opted to reject the proposal from Disco Wheel Ltd and continue marketing. However, this would have risked a longer void period and ongoing holding costs, with no guarantee of achieving improved terms. Given current market conditions and the quality of the offer received, this option was not recommended by the Council's agents or Council officers.   Proposed Acquisition of 161 Queen’s Drive, N4 2AR: The Council’s Benefits and Homeless Prevention Service is facing a shortage in the supply of Council-owned and / or leased accommodation for use as emergency / temporary accommodation, especially within the Borough. This has resulted in the increased use of expensive nightly-paid annex accommodation, plus the increasing use of out-of-borough accommodation.   Should the Council not purchase this property, then it cannot be certain of the future availability or price of similar new build HMOs within the Borough.   If the Council does not purchase this property then there will be a continued need for short-term, emergency accommodation inside and outside of the Borough for the most vulnerable residents in housing need. The significant revenue cost for this accommodation will therefore remain, with potential for it to increase. Purchase of this property, will enable the Council to allocate the 34 units comprised in the property, to meet such need, and so to notably reduce that revenue cost, and risk of such cost increase.