Decision details

To approve the award of contract

1.  That the award of Lot A4 from the Southwark Regeneration in Partnership Programme (SRPP), land at Cherry Garden School, Macks Road SE16, subject to obtaining a Section 77 Consent, to Higgins Homes Plc to deliver 56 New Homes of which 18 will be council homes and a residual land offer to the council of £1,200,000 with a development period of two years commencing from February 2019 and completing in December 2020 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 Cherry Garden School, Macks Road SE16 on the terms of the development agreement to be entered into with Higgins Homes Plc 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 50% of sales above the developer’s projected total sales of the private units at the final bid submission calculated after deducting the projected sales costs and indexed build costs from the additional sales value (see paragraph 83).

4.  That it be noted that the council will receive a total benefit of £6,726,000 consisting of 18 social rented units, council’s preparation costs of £126,196 and a land offer of £1,200,000 which is approximately £1,726,000 greater than if the land was sold on the open market with an estimated value of £5,000,000.