Decision details

To seek approval for disposal of the site 161 -179 Manor Place/Stopford Road, SE17, 42 Braganza Street SE17 for development of 89 new homes, of which there are 20 council homes, and 1,543m2 of commercial space that will be retained by the council to Durkan Ltd – who were selected in line with the SRPP Lot A procurement strategy agreed by cabinet on 21 March 2017.

1.   That the Head of Property and the Director of Law and Democracy be authorised to grant, on practical completion of the proposed scheme, a 250 year lease at a peppercorn rent, in Manor Place and Braganza to Durkan Ltd to deliver 89 new homes of which there are 20 social rented council homes 1,543m2 of commercial space that will be retained by the council and a residual land offer to the council of £4,600,000. The council will retain the Freehold interest.

2.   That the Head of Property and the Director of Law and Democracy be authorised to grant a building lease to the developer at contract award stage.

3.   That the Head of Property and the Director of Law and Democracy be authorised to enter into a 250 year less one day sub lease in the social rent and commercial units, to be granted on practical completion of the development. The sub lease to be at a peppercorn rent.

4.   That it be noted that the council will receive a total benefit of £11,300,306 consisting of 20 rented units valued at £300,000 per unit, reimbursement of preparation costs of £700,306 a land offer of £4,600,000 which is approximately £2,400,306 greater than if the land was sold on the open market with an estimated value of £8,900,000. (see paragraph 25- table 3).