Estate updates

Report: 15
Date: 9 June 2003
By: Commissioner

Linked to exempt report 24 (exempt reports are not open to the public)

Summary

This report updates members on the latest information on Estate Property Services matters.

A. Recommendation

That members note the information on current estates issues.

B. Supporting information

Introduction

1. At the Finance Committee on 24 October 2002, it was agreed that a report on estates issues would be produced at alternate meetings. Source documents can be found in previous relevant reports and have been made available to members.

Trenchard House, Soho

2. The marketing of this property has commenced and advertising appeared on 24 May and will be repeated in June. The two stage invitation to submit bids is detailed in an information pack available to interested parties and a copy of this, along with the brochure, is available to members on request.

Rochester Row, Pimlico

3. The disposal of this property on an unconditional basis (but subject to 'clawback' whereby the MPA would share in any profit from early onward sale by the purchaser and 'planning overage' whereby the MPA shares in value uplift should planning consent be achieved above that anticipated) has been completed in the sum stated in the linked exempt report.

Hounslow Heath – former training centre

4. The disposal of this property on an unconditional basis (but subject to 'clawback' whereby the MPA would share in any profit from early onward sale by the purchaser and 'planning overage' whereby the MPA shares in value uplift should planning consent be achieved above that anticipated) has been completed in the sum stated in the linked exempt report. Part of the proceeds will offset the capital sum payable to the PFI provider for the Gravesend replacement facility under the terms of the PFI arrangement.

Former MPA residential property short term let to housing associations

5. Discussions continue with Housing 21 to transfer the management of these properties to an alternative housing association. We believe that Housing 21 are in breach of their obligations to the MPA and that financial loss may well have resulted. A claim is being quantified and solicitors instructed to advise further.

Glidewell/co-location with Crown Prosecution Service (CPS)

6. A separate report will be made to the Committee on the detail of the proposed property arrangements.

Central London estate

7. This is subject to a separate exempt report to the Committee.

Key Home Buyer Scheme

8. This scheme provides assistance to officers and certain categories of civil staff in buying a home. To date there have been 211 accepted applications for assistance (193 officers and 12 civil staff) and 192 sales have been completed. Some £10.6m of grant remains to be allocated and discussions are continuing to extend the scope of eligibility. The attached schedules at Appendix 1 provide further detail that may be of interest to members.

Right to buy update

9. For a limited period, certain residential tenants were entitled to exercise a 'right to buy'. In July 2002, 107 tenants were entitled to these rights, 76 applications have been received and 61 have proceeded. 8 sales have been on 'rent to mortgage' terms, which mean the MPA retains an equity stake in the properties amounting to £1.15m. If all applicants proceed to completion a capital receipt of c£15m is anticipated. The average market value of properties sold is c£198,000 and average price after discount is c£160,000. The total value of all discounts to date is c£2.7m.

Action under delegated powers (Director of Property Services):

10. The following significant items have been actioned under delegated powers.

• PCSO Training facilities – these are currently located in serviced office accommodation in Central London. The original arrangement was for a period of one year and was due to expire in May 2003. The arrangement has been extended, upon improved terms, for a further year now that PCSO funding is clearer. Work is in hand to find a more permanent base.
• Short term operational storage – as a result of operational support requirements stemming from the current global situation it has been necessary to make short term storage arrangements in a number of locations.

C. Equality and diversity implications

Any equality and diversity implications arising from the matters in this report are being assessed as part of the individual project or item and will be reported separately to the Committee at the appropriate time.

D. Financial implications

Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time.

E. Background papers

None.

F. Contact details

Report author: Alan Croney, Director of Property Services, MPS.

For more information contact:

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

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