Old Street Police Station - MPA decision to sell

55/05
27 October 2005

Members of the Metropolitan Police Authority today reached a decision to sell Old Street Police Station after a competitive bidding process on the open market.

Negotiations will now be concluded with the preferred bidder identified by the competitive marketing exercise. These negotiations remain confidential.

Len Duvall, Chair of the MPA, said:

“The offer we have accepted reflects the market value for property in this part of London and the price achieved will enable us to reinvest to meet policing needs.

“The MPA has a duty to use its resources prudently to achieve efficient and effective policing services in London and best value when disposing of any part of the police estate. Proceeds form the sale of surplus property play a major part in funding the strategic changes to the estate we need to make urgently to ensure that our buildings are fit for use, by both the police and the public, in the 21st century and also help to roll out our Safer Neighbourhood teams across London.”

The MPA had previously been working with the Community Advice Project (CAP), which wanted to use the building for a multifaceted community project. However, while the CAP initiative had the broad support of the whole Authority, four years of negotiations failed to reach a mutually satisfactory conclusion. CAP submitted a bid for the property in the current marketing procedure that was short listed for consideration but it was more than £2 million less than the highest bid.

Len Duvall concluded:

“CAP’s scheme has much to commend it and is precisely the kind of initiative that the MPA, MPS and borough councils across London strive to support. In this case, however, the Authority did not consider it would be justified to underwrite the scheme at the level required in this building.”

Notes to editors

1. Papers regarding the sale of Old Street considered by the full Authority this morning are available on the MPA website: www.mpa.gov.uk/committees/mpa/2005/051027/14.htm

2. The marketing was managed by external agents appointed by the Director of Property Services. It was conducted as a two-stage exercise. Bids were invited by advertisement and from those bids, a shortlist of purchasers was drawn up. The short listed bidders were then invited to submit their best and final offers.

3. Overall responsibility for the Metropolitan Police estate is vested in the Metropolitan Police Authority (MPA), the statutory organisation responsible for ensuring an efficient and effective police service for London.

4. The MPA has a statutory duty to achieve best value for property sold. Receipts realised from disposals are reinvested in the police estate.

5. Day-to-day management of the police estate is delegated by the MPA to the Metropolitan Police Service’s Property Services Department. The estate comprises over 600 operational buildings and 1116 residential properties, used by 42,000 police officers and staff, and is valued at c£1.7billion. The MPA Estates Strategy is detailed in the strategy documents ‘Building Towards the Safest City’ copies are available through on the MPA website.

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