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Report 9 of the 14 April 2011 meeting of the Finance and Resources Committee, requests approval to dispose of the freehold interest in Harold Hill Former Police Station, Gooshays Drive, Harold Hill, Romford, RM3 8AE following an open market tender.

Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).

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Request for approval to dispose of Harold Hill former police station, Gooshays Drive, Harold Hill, Romford, Havering

Report: 9
Date: 14 April 2011
By: Director of Resources on behalf of the Commissioner

Summary

This report requests Members approval to dispose of the freehold interest in Harold Hill Former Police Station, Gooshays Drive, Harold Hill, Romford, RM3 8AE following an open market tender.

A. Recommendations

That Members

  1. Approve the disposal of the freehold interest in Harold Hill Former Police Station at the value and to the highest bidder identified in Exempt Appendix 2 following an open market tender;
  2. Note the disposal is consistent with 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 2011/12 Capital Programme.

B. Supporting information

1. The Corporate Real Estate (CRE) programme aims to i) ensure the MPS estate is fit for purpose and to enable high quality policing in London, ii) optimise the efficiency of the MPS estate, making best use of accommodation and disposing of assets where appropriate and iii) achieve cashable savings to ensure officer/staff roles are protected.

2. The property is situated in the London Borough of Havering and fronts onto Gooshays Drive at the junction with Trowbridge Road and opposite Harold Hill Health Centre. The site of 0.67 acres contains a detached two storey building and two self-contained semi-detached houses. The main police station building is arranged as a number of individual rooms with car parking to the front. The two houses are interconnecting at ground floor level and include both front and rear gardens. The main police building is closed and decommissioned, the front counter service having relocated to the Safer Neighbourhoods base at Straight Road, Havering. The two houses currently provide temporary accommodation for SCD2 who will be relocating to Chadwell Heath Police Station in early April 2011. The property is therefore considered surplus to requirements.

3. The property was marketed in a campaign during February and March 2011. Strettons as agents acting on behalf of the MPA placed advertisements in the national property press and relevant local press. Strettons also hosted details of the property on their website and distributed particulars of the property to interested parties. Bids for the property were invited to be received by the agents no later than midday on 15 March 2011

4. All bids were invited on an unconditional basis and subject to a standard five year 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. Two bids were received by the deadline. The results of the two bids are shown in Appendix 1 (Exempt). 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). Both bidders were invited to clarify their bids and submit their best and final offers by 5.00pm on 22 March. Because of the identified disadvantages to the MPA in accepting bids conditional upon planning, bidders were requested to ensure that second stage bids were on an unconditional basis only. The results of the second stage bids are attached in Appendix 2 (Exempt).

6. With external advice from Strettons, Property Services recommend Members approve the sale of the property to the party identified as the highest bidder in Appendix 2 (Exempt). 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. Other organisational & community implications

Equality and Diversity Impact

1. In line with corporate real estate principles; maximising the use of space and minimising costs, it is essential that those buildings provided for longer-term use (enabling the release of surplus assets) are fit for use, compliant and provide suitable accessibility. There are considered to be limited equality or diversity issues arising as a result of this proposed disposal.

2. Private treaty disposals are open market sales making the properties available to all members of the public.

3. In the event of residential redevelopment of the operational sites, the provision of key worker or social housing accommodation at a site will need to meet the requirements of the Local Planning Authority, as and when granting planning consent for development.

Consideration of MET Forward

4. This paper aligns with the strategic intent of Met Forward section 7, Met Support - in particular the Estates Programme. The recommendation is to dispose of surplus properties to meet the Capital Programme budget and also deliver revenue savings.

Financial Implications

5. The 2011/2012 Capital Receipts budget is set at £40m. This budget is to be achieved through the disposal of operational and residential properties that are surplus to requirements.

If approved, the receipts generated from the disposal of the freehold will be allocated to 2011/2012 capital programme.

6. The revenue costs related to the maintenance of this property based on 2009/10 costs are detailed below. Maintenance/repair works have been kept to a minimum.

Category £/per year – based on 2009/10 costs
Planned Maintenance Costs (security/repairs/insurance) 23,650
Reactive maintenance (security call out/damage repair) 8,568
Rates 10,541
Utilities 5,533
Total 48,292

Costs to hold the property in the longer term have not been included within Property Services future budgets as approved within the 2011/14 Business Plan; a longer term hold will require funding to be provided through future business planning processes.

Legal Implications

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

8. 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 from independent Property Agents. On the basis of the information contained within this report and discussions with Property Services, DLS are supportive of the proposed recommendations.

9. 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. On the basis of this report, the recommended disposal by way of sale of the freehold by open market tender is considered by DLS to be compliant with the MPA’s Standing Orders relating to Property disposals, set out in section 10 of Part F.

10. 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.

11. The 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).

12. Members have delegated authority to approve the recommendations contained within this report under the terms of reference of this committee.

Environmental Implications

  Higher Lower No impact Mitigation/ management of any higher impact
Level of energy use and associated carbon dioxide emissions   Tick   The building referred to herein is surplus to requirements. Whilst there is a reduction in MPS emissions, a future occupier will use energy.
Level of water consumption   Tick   The building referred to herein is surplus to requirements. Whilst there is a reduction in MPS emissions, a future occupier will use water.
Level of waste generation/waste requiring disposal   Tick   The building referred to herein is surplus to requirements. Whilst there is a reduction in MPS waste, a future occupier will generate waste.
Level of travel and transport and associated emissions   Tick   The building is being disposed of. All MPS visits to the property will cease.
Raw material use and finite resources (use of recycled materials and sustainable alternatives)     Tick Property will be disposed of.

Risk Implications

13. With continued general financial uncertainty and on-going difficulties in obtaining funding for both commercial re-developments and residential mortgages there is a risk that the sale will fail to complete and / or the purchaser will look to renegotiate the purchase price.

D. Background papers

  • Havering Borough Operational Command Unit transfer of front counter service from Harold Hill police station - MPA Finance and Resources - 21 October 2010
  • Request for Authority to Dispose of Surplus Properties in 2010/2011 - Finance and Resources Committee- 11 February 2010

E. Contact details

Report authors: Jane Bond, Director of Property Services and Neil Webster, Interim Director of Asset Management, MPS

For more information contact:

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

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