Acquisition of Sovereign Gate Richmond post acquisition report

Report: 11
Date: 14 April 2011
By: Director of Resources on behalf of the Commissioner

Summary

This report formally updates members on progress since the Finance and Resources Committee approval to acquire the freehold of the building in March 2010.

A. Recommendations

That Members are asked to:

1. Note the financial benefits of the acquisition and review the key issues of the original business case to determine whether the original objectives have been achieved;
2. Note the decisions taken to support operational requirements
3. Note the progress in delivering the property for occupation

B. Supporting information

1. Previously as part of the business case for the Initial Probationer Learning and Development Programme (IDLP) Sunbury Training Centre was one of the eight MPS centres supporting IDLP. With the change in the delivery of training within the MPS and the introduction of a reduced number of Regional Learning Centres (RLC) as part of HR strategies, the MPA approved the acquisition of Sovereign Gate to provide the South West RLC and the disposal of Sunbury Training Centre and Penhryn Road in March 2010.

2. In addition to supporting training needs, the building also offered the opportunity to provide suitable accommodation for three BOCU Safer Neighbourhood Teams within Richmond Town Centre and a public front counter facility.

Progress since March 2010

3. The purchase of the freehold interest in Sovereign Gate completed on 23 April 2010 – the financial details are included in exempt Appendix 1.

4. Contractors are on site conducting a strip-out as part of an enabling works package prior to the fit-out. Strip out will be complete by the end of March 2011. Fit-out works are to commence in late April with a 16 week construction programme. Training is expected to commence in the Autumn 2011.

5. All training functions have now ceased at Sunbury Training Centre and pending completion of fit-out works at Sovereign Gate have temporarily relocated to alternative accommodation at Empress State Building. Sunbury Training Centre is now vacant and agents have been instructed to dispose of the MPA’s freehold interest.

6. The three main strands of the business case i) to support and improve efficiency of training throughout the MPS ii) to re-provide training facilities previously based at Sunbury Training Centre allowing disposal of Sunbury Training Centre and 3-5 Penrhyn Road, Kingston and iii) satisfy operational requirement for Richmond BOCU are all being delivered.

C Other organisational and community implications

Equality and Diversity Impact

1. The property will provide a modern compliant training environment that is accessible to staff and recruits with excellent public transport links as well as front-counter facilities and facilities for the three Safer Neighbourhood teams. The new front counter will be fully DDA compliant.

Consideration of MET Forward

2. This paper aligns with the strategic intent of Met Forward section 7, Met Support - in particular the Estates Programme. The acquisition of Sovereign Gate promotes efficient utilisation of real estate and facilitates, the disposal of surplus properties to meet the Capital Programme budget and also deliver revenue savings.

Financial Implications

3. The financial implications are set out in exempt Appendix 1

Legal Implications

4. The purchase of Sovereign Gate was compliant to S123.

5. The refurbishment works were procured in accordance with Part E (The Contract Regulations) of the MPA standing orders, and the Public Contract Regulations 2006. Procurement Services were engaged to ensure compliance with the above procurement regime.

6. External lawyers were instructed through MetLaw (DLS) to complete the conveyance and ensure the MPA’s interests were protected. External lawyers will be instructed through Metlaw (DLS) to complete the conveyance for the disposal of Sunbury Training Centre and Penhryn Road.

Environmental Implications

7. The thermal efficiency of Sovereign Gate when purchased was significantly superior to both Sunbury and Penrhyn Road. It is being further enhanced during the refurbishment works to comply with current standards. The cost of upgrading Sunbury and Penrhyn Road to current standards would not be justifiable.

8. Sovereign Gate is located very close to a combined railway / underground station and a bus hub. The multiple public transport routes make the building easily accessible for both training staff and recruits. Private vehicle journeys will reduce significantly compared to the previous arrangements.

Risk Implications (including Health and Safety)

9. In order to ensure refurbishment works are carried out to compliant standards a Construction Design and Management (CDM) Co-ordinator has been appointed. The CDM co-ordinator has reviewed the competency of the contractor and reviewed the design and method of construction. The CDM co-ordinator will also manage the Health and Safety process with the Health and Safety Executive

10. A planning approval is required for change of use on part of the property. There is some risk that this will not be approved.

11. The structure is suitable for the current user requirement. The structure may not be suitable if there is a need to change the user requirement.

D. Background papers

• MPA Finance and Resources Committee - Request for Authority to Acquire A Freehold Building In Richmond - 18 March 2010
• MPA Finance and Resources Committee - Process for Agreeing Changes to The TP Estate - 21 January 2010
• Finance Committee - Update On The central London Estate Strategy - 19 July 2007
• MPS Investment Board - IDLDP Implementation (ref IB(06)89) - 19 September 2006

E. Contact details

Report authors: Jane Bond – Director Property Services, MPS

For more information contact:

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

Send an e-mail linking to this page

Feedback