Review of capital receipts for 2000/1

Report: 20
Date: 19 June 2001
By: Commissioner

Summary

Capital receipts of £48.3m were achieved against the target of £40m for 2000/01. The increase was as a result of increases in the estimated value of the properties; increases in the number of residential quarters sold; and changes in the mix of properties sold.

A. Recommendation

Members are asked to note the report which has previously been considered by the Estates sub-group.

B. Supporting information

1. The capital receipts target from property sales for 2000/01 was set at £40m.

2. The out-turn was £48.3m. Finance Services Department were kept appraised of the likely out-turn during the year and, with their agreement, receipts continued to be sought after the target of £40m had been met.

3. The target of £40m was predicated on:

• £14m from residential sales
• £4m from (4) site disposals
• £22m from vacant operational buildings (including police stations (PS)) and section houses (SH), which included:
• Bow Street PS
• 10 Ramillies Place
• Rochester Row PS
• Tottenham Court Road PS
• Chigwell PS
• Collier Row PS
• East Ham PS
• Biggin Hill PS
• Chislehurst PS
• Mannamead Stables
• Putney PS & SH
• Paul Breen SH
• Maurice Drummond SH

Changes in programme

4. Sales aborted during the year by the purchaser totalled £20.11m (mostly residential sales to officers) of which the April 2000 forecast included a £13m adjustment; £7m arose after April.

Residential quarters

5. A 'sales' moratorium was introduced by the MPA in autumn 2000. This was lifted at New Year 2001.

6. Estimated residential sales - £14m

• 151 residential quarters were sold totalling - £19.8m
• Aborted sales - £20.1m
• Increase in residential values over estimates - £361k
  (an average of £2,400/dwelling)

Other properties

6. Estimated sales - £26m
Actual sales (13 properties) - £28.5m - which included:

• 3 Sites (NB Bunns Lane was not sold)
  • Neasden site
  • Hornsey site
  • Wanstead site
• 10 Ramillies Place
• Tottenham Court Road PS
• Chigwell PS
• Biggin Hill PS
• Chislehurst PS
• Mannamead Stables
• Pendalls Camp (new disposal – former radio station at Merstham)
• Putney PS & SH
• Paul Breen SH
• Woodlands, North Wales (new disposal – part of hostel formerly used for training in N Wales); only ½ sold following initial marketing)

C. Financial implications

Additional receipts of £8.3m were generated for the MPA during 2000/01

D. Background papers

None.

E. Contact details

The author of this report is Trevor Lawrence, Director of Property Services.

For information contact:

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

Send an e-mail linking to this page

Feedback