DD2735 Estate Service Centre Disposal Greenwich Peninsula

1.1.    The regeneration of Greenwich Peninsula is a priority for the Mayor, and represents one of London’s largest development projects involving public land. The option to develop the Greenwich Peninsula site, which comprises 67 plots, was fully acquired by Hong Kong-based development company Knight Dragon Developments Limited (KD) in 2013, through its acquisition of the joint venture development vehicle from former owners Quintain and Lendlease.

1.2.    All development on the Peninsula comes forward under the terms of the Land Development Agreement (LDA), a development agreement entered in 2002 by Greenwich Peninsula Regeneration Ltd (then a joint venture development company) and English Partnerships. The LDA gives KD exclusive rights to develop plots owned by GLA Land and Property Limited (GLAP) that form the Greenwich Peninsula area, provided certain minimum development requirements are met. KD is also responsible for the delivery of site-wide infrastructure. 

1.3.    Development decisions on Greenwich Peninsula were delegated to the Executive Director of Housing and Land, and the Executive Director of Resources, under MD1111. This was to avoid a conflict of interest on projects that may require new planning consents on the Mayor’s land. The latter post no longer exists; the postholder’s responsibilities in this matter fall to the Chief Finance Officer.

1.4.    In 2013, KD took full control of the 2004 masterplan area outline planning application (ref: 02/2903/O). A subsequent outline planning permission for the 2015 masterplan was approved in December 2015 (ref: 15/0716/O). The 2015 masterplan was prepared after it became evident that the 2004 masterplan no longer met current and future needs. Plot 21 is in the 2015 masterplan area, located south of the Peninsula near built infrastructure items including an Energy Centre and all-through school.

1.5.    A mini masterplan, known as the 2019 masterplan, was submitted by KD in August 2019 (ref: 19/2733/O) to the Royal Borough of Greenwich, which approved it on 1 September 2022. This reflected the new housing strategy. This application increased the overall number of homes to be delivered on the Peninsula by 1,757, to make a total of 17,487. It increased the level of affordable housing from 25 per cent by unit under the 2015 masterplan, to 28 per cent by unit (30 per cent by habitable room). This was supported by the delivery of up to 60 per cent affordable housing within the Brickfields neighbourhood of the Peninsula, to be delivered by affordable housing partners in the new housing delivery strategy as outlined in DD 2353. 

1.6.    Under the 2022 masterplan, a new S106 agreement was entered into for the entire site. This provides for a range of infrastructure to be delivered to support increased housing numbers. This includes social infrastructure (3 schools, a health centre, swimming pool and sports grounds), 48 acres of open public space, a new transport interchange, including a new bus station and two multi-storey car parks. Alongside S106 obligations regarding the delivery of site-wide infrastructure, KD is responsible for delivering other ancillary infrastructure such as the Estate Service Centre (ESC).

1.7.    The ESC, located on Plot 21, gained planning permission in July 2017 (ref: 16/2309/F) and provides a range of estate services including: 

•    storage of maintenance vehicles, equipment and bulky parcels for distribution.
•    central location for eight waste compactors, where refuse and recyclables from residential development are brought and stored until collection.
•    office space for estate management staff.

1.8.    Although operational since 2018, a 999-year lease is proposed for the disposal of Plot 21 to KD. The key terms of the lease are outlined in Part 2 of this Decision Form.  

1.9.    The lease will be granted under the terms set out in the LDA for plots that comprise infrastructure. 
 

2.1.    This decision will enable GLAP and KD to enter into a plot lease for Plot 21. The plot lease will be granted in accordance with the LDA.

2.2.    The objectives are to: 

•    deliver development in accordance with the approved masterplan
•    unlock further housing delivery through the provision of key infrastructure on the Peninsula
•    support the long-term regeneration of Greenwich Peninsula. 
 

3.1.    Under section 149 of the Equality Act 2010 (the Equality Act), functions of the GLA exercisable by the Mayor are subject to a public sector equality duty and must have ‘due regard’ to the need to: 

•    eliminate unlawful discrimination, harassment and victimisation 
•    advance equality of opportunity between people who share a relevant protected characteristic and those who do not
•    foster good relations between people who share a relevant protected characteristic and those who do not. 

3.2.    Protected characteristics under section 149 of the Equality Act are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status. This decision is expected to have positive impacts on persons with a protected characteristic under the Equality Act, as it supports the overall Greenwich Peninsula masterplan. This delivers 17,487 homes, of which 30 per cent will be affordable. The disposal of infrastructure plots such as the ESC at Plot 21 is a required infrastructure item that will support the overall masterplan delivery, including the future Brickfields neighbourhood which provides affordable housing at 50-60 per cent. Increasing affordable housing supply and employment will help address problems such as overcrowding, unemployment and homelessness. Evidence indicates that these problems disproportionally affect specific groups – including women, and Black and Minority Ethnic groups.
 

Links to Mayoral strategies and priorities 

4.1.    The Greenwich Peninsula is an Opportunity Area, designated in the London Plan (March 2022). The Opportunity Area has an indicative capacity for 17,000 new homes and 15,000 new jobs. Policy SD1, ‘Opportunity Areas’, sets out the need for Opportunity Areas to fully realise their growth and regeneration potential. It includes the requirement that Opportunity Areas maximise the delivery of affordable housing, and creative mixed and inclusive communities.

Consultations and impact assessments 

4.2.    Statutory consultation was undertaken by the Local Planning Authority as part of the consideration of the planning application for Plot 21. 

4.3.    GLA officers have engaged with KD on this decision. It has not been considered necessary or appropriate to consult any other persons or bodies, including those specified in section 32(1) of the Greater London Authority Act 1999. 

4.4.    There are no known conflicts of interest to declare for those involved in the drafting or clearance of this DD. 
 

5.1.    Financial comments are included in Part 2 of the decision form. 

6.1.    The foregoing sections of this report indicate that the decision requested falls within the statutory powers of the Authority, exercisable by the Executive Director of Housing and Land, and the Chief Finance Officer (having delegated authority via MD1111 pursuant to section 38 of the GLA Act), to do such things considered facilitative of, or conducive to, the promotion of economic development, social development and the improvement of the environment in Greater London.

6.2.    Therefore, the Executive Director of Housing and Land, and the Chief Finance Officer (pursuant to their delegated authority granted under MD1111), may approve the proposed entry into the agreement and other legal documents referred to in this report if satisfied with the content of this report. 

6.3.    As GLAP will be the party to the documentation, it will also need to approve the proposed documentation in accordance with its constitution. 
 

7.1.    The work will be delivered according to the following timetable: