Decision details

To seek approval for disposal of the site of former Cherry Gardens School, Macks Road SE16 for development of 56 new homes, of which 18 will be council homes to Higgins Homes Plc - who have been selected in line with the 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 the former Cherry Garden School, Macks Road SE16 to Higgins Homes Plc to deliver 56 new homes of which there are 18 social rented council homes and a residual land offer to the council of £1,200,000.

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 be authorised to enter in to a 250 year less one day sub lease in the social rent 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 £6,726,000 consisting of 18 social rented units, reimbursement of preparation costs of £126,196, and a land offer of £1,200,000, which, in total, is approximately £1,726,000 greater than if the land was sold on the open market with an estimated value of £5,000,000. (see paragraph 22-table 3)