Request for approval to dispose of 9-11 Lawford Road, Kentish Town, Camden, NW5 2LH

Report: 13
Date: 15 July 2010
By: Director of Resources on behalf of the Commissioner

linked to exempt item 21

Summary

This report requests Members approval to dispose of the freehold interest in 9 -11 Lawford Road, Kentish Town, Camden, NW5 2LH following an open market tender.

A. Recommendations

That Members:

1. Approve the disposal of the freehold interest in Lawford Road, Kentish Town at the value and to the bidder identified in Exempt Appendix 2 following an open market tender;
2. Note the disposal is consistent with the MPA Residential Estates Strategy and the approval in principle decision made by the Committee on 11 February 2010, and
3. Note that the capital receipts from the disposal will support the 2010/11 Capital Programme.

B. Supporting information

1. The MPA/MPS Residential Estate Strategy was first approved on the 16 February 2006 and seeks to reduce the size of the existing residential estate to a maximum of 200 units, by disposing of those properties considered surplus to operational requirements with the funds generated through sales being used to support future capital programmes.

2. 9-11 Lawford Road is a block of three flats constructed in the 1960s on a site of 0.115 within the London Borough of Camden. The property is located off Kentish Town Road and is a five minute walk from Kentish Town underground station. The property has never been used for operational police purposes and there is no public facing front counter and no blue lamp. The MPA own the freehold title of the property. All three flats are vacant and the property is considered surplus to need and can be released.

3. The property was openly marketed in a campaign with two other MPA residential properties between March and May 2010. A marketing board was situated at the property and advertisements were placed in the national property press and relevant local press. Knight Frank as agents acting on behalf of the MPA hosted a dedicated marketing website and distributed particulars of the property to interested parties. Bids were initially invited to be received by the agents no later than 12pm on 20 April 2010. However, at some point during April squatters took possession of the property and viewings were suspended until such time as vacant possession could be re-established. All interested parties were advised of the situation and that as a consequence of the occupation by squatters the closing date for initial bids would be revised for a later date to be confirmed. Vacant possession was obtained on 13 May following which marketing fully resumed and further viewings undertaken.

4. Bids were re-invited to be received by the agents no later than 5.30pm on 21 May 2010. All bids were to be on an unconditional basis and subject to a standard forward-sale clawback clause, to enable the MPA to take benefit in the event that the purchaser subsequently sells the property on at a price in excess of that originally paid to the MPA. Bidders were also advised to consider including provision for additional sales overage or planning clawback in their bids.

5. 14 bids were received by the deadline for the first stage of the tender. 13 of the bids were solely for Lawford Road, one bid was included within an earlier bid on the other MPA properties being simultaneously marketed. The results of the 14 bids are shown in exempt Appendix 1. The bids were then evaluated to determine which bids offered the highest value (taking into account any additional sales overage or planning clawback) from a credible purchaser (taking into account the availability of funding) and a shortlist of four were invited to submit their best and final offers. Three compliant bids were received by the deadline of 5.30pm on 27 May 2010 and the results are attached in exempt Appendix 2.

6. With external advice from knight Frank, Property Services recommend Members approve the sale of the property to the highest bidder identified in exempt Appendix 2. Should approval be granted Property Services will proceed with the completion of this matter and report the transaction in the next quarterly Estate Update Paper.

C. Race and equality impact

There are considered to be no equality or diversity issues arising as a result of this disposal.

D. Financial implications

Capital

1. The target for Capital Receipts for the 2010/2011 financial year is set at £20 million. This target is to be achieved through the disposal of operational and residential properties that are surplus to requirements. These receipts will be allocated to 2010/2011 targets.

2. If approved, the receipts generated from the disposal of the freehold will be allocated to 2010/2011 capital programme.

Revenue

3. The revenue costs related to the maintenance of this property based on 2010/11 costs are detailed below. Maintenance/repair works have been kept to a minimum.

4. Costs to maintain the building in the longer term have not been included within Property Services future budgets as approved within the 2010/13 Business Plan; a longer term hold will require funding to be provided through future business planning processes.

E. Legal implications

1. The MPA powers to dispose of the freehold by way of sale are contained in s123 of the Local Government Act 1972.

2. Property Services consider the disposal of the freehold to the bidder identified in Exempt Appendix 2 achieves best consideration that can reasonably be obtained in all of the circumstances, having followed an open and transparent marketing and tendering exercise, and having sought professional advice.

3. The MPA, in exercising its discretion to dispose of the property, must have regard to its obligation to do so fairly having regard to established policy and procedure. The recommended disposal by way of sale of the freehold is considered by Property Services to be consistent with the Residential Estate Strategy approved by the Finance & Resource Committee in February 2006, and compliant with the MPA’s Standing Orders relating to Property disposals, set out in section 10 of Part F.

4. The recommendation is subject to contract, and external lawyers have been instructed through MetLaw (DLS) to complete the conveyance and to ensure the MPA’s interests are protected.

5. The report and appendices are considered to contain exempt information in accordance with paragraph 3 of the Local Government (Access to Information) (Variation) Order 2006, as it relates to information relating to the financial or business affairs of any particular person (including the authority holding that information).

F. Environmental implications

G. Background papers

• Residential Estates Strategy - MPA Finance - 16 February 2006 (Exempt)
• Request for Authority to Dispose of Surplus Properties in 2010/2011 - MPA Finance and Resources - 11 February 2010

H. Contact details

Report author(s): Neil Webster, Interim Director of Asset Management

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Abbreviations

• DLS – Directorate of Legal Services
• MPA - Metropolitan Police Authority
• MPS - Metropolitan Police Service

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