Decision details

To approve the award of contract

1.  That the award of Lot A1 from the Southwark Regeneration in Partnership Programme (SRPP), Manor Place and Braganza, to Durkan Ltd to deliver 89 new homes of which there are 20 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 with a development period of two years seven months commencing from 22 January 2019 and completing on July 2021 be approved.

2.  That it be noted that the award is subject to approval being given for the disposal of the council’s land at Manor Place and Braganza on the terms of the development agreement to be entered into with Durkan Ltd pursuant to the contract being awarded.

3.  That it be noted that the award is based on the developer’s overage payment to the council at 33.3% of sales above the developer’s projected total sales of the private units at the final bid submission stage calculated after deducting the projected sales costs not exceeding 5% of actual sales (see paragraph 74 of the report).

4.  That it be noted that the council will receive a total benefit of £11,300,306 consisting of 20 rented units, 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.