1. That the award of the Southwark Regeneration in Partnership Programme Lot A3, 345 Southwark Park Road, to Lovell Partnerships Ltd for a period of two and half years commencing from November 2019 and completing in January 2022 at a residual land value of £489,961, to deliver 46 new homes (of which 22 will be council homes) and 580m2 of commercial space that will be retained by the council be approved.
2. That the council making a capital contribution of £1,400,000 to Lovell Partnerships 50% at start on site, and the balance 50% at practical completion stage, further details of which are noted at paragraph 14 of the report be approved.
3. That the director of regeneration be authorised to grant on satisfaction of the conditions precedent to the Development Agreement, a 250 year lease at a peppercorn rent.
4. That the director of regeneration be authorised to enter into a “250 year lease less one day” sub lease in the social rent and commercial units to be granted on practical completion of the development, and at a peppercorn rent.
5. That it be noted that the strategic director of place and wellbeing is taking the acquisition decision in the absence of the director of regeneration, and in consultation with the strategic director of housing and modernisation, and the cabinet member for social regeneration, great estates and new homes.
6. 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 stage of £14,500,000 less any increase in build costs by reference to the BCIS Index.
7. That it be noted that the council will receive a total benefit of £6,045,917 as laid out in paragraph 85 of the report and taking into account a capital contribution by the council of £1.4m, results in a value which is approximately £545,917 greater than if the land was sold on the open market with an estimated value of £5,500,000, further details of which are noted at paragraph 56, Table 4 of the report.