ADD2166 Valuer for sites within the Tottenham Housing Zone

Type of decision: 
Assistant Director's decision
Code: 
ADD2166
Date signed: 
30 October 2017
Decision by: 
Fiona Duncan, Head of Area (North East)

Executive summary

GLA Officers are seeking permission to commission a series of valuations (desktop and subsequently Red Book) and accompanying due diligence for sites within the Tottenham Housing Zone for potential acquisition by GLA Land and Property (GLAP).  Any acquisitions would be with a view to supporting the Mayor’s ambition to increase levels of affordable housing in London and would be subject to separate Mayoral Decisions. 

 

Decision

The Assistant Director approves:
i.    the appointment of Cushman Wakefield, and associated expenditure of up to £40,000, to undertake valuation work and property due diligence to inform wider decision-making on potential land acquisitions within the Tottenham Housing Zone; and
ii.    a related exemption from the requirement in the Contracts & Funding Code to procure competitively.
 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    The Mayor is ambitious, both as part of the Housing Zone programme and through his wider Housing Strategy (currently in draft), to work with boroughs and developers to deliver more affordable housing within London. One route to doing so is through the acquisition of land within London that can then be brought forward for development.

1.2    GLA Officers are seeking permission, through this ADD form, to commission a series of valuations (both desktop and subsequently Red Book) and accompanying necessary due diligence for sites within the Tottenham Housing Zone for potential acquisition by GLAP. 

1.3    The identified site has previously formed part of a package of appraisals undertaken by Cushman Wakefield on behalf of Transport for London as part of other tangential commissions. Whilst this work was not a direct valuation, and cannot be repurposed as such, Cushman Wakefield have substantial background knowledge and understanding of the site and relationship with all key parties. It is therefore proposed they are appointed to undertake this work to save the GLA substantial time and resources and to draw on their understanding of the site, which other consultant teams would not have.

1.4    Once the valuation advice is received, detailed negotiations will take place with the existing owner with a view to agreeing potential acquisitions. At that stage, further approval will be sought from the Mayor as required. 
 

Objectives and expected outcomes

2.1    The valuation and due diligence advice commissioned for this site will assist in any decision-making for acquisition. Should terms for an acquisition of the site be agreed, any disposal would subsequently look to ensure increased delivery of affordable housing in line with the Mayors vision for public land.

 

Equality comments

3.1    In September 2017, the Mayor published the draft London Housing Strategy. The strategy commits to working with key partners and London Boroughs to bring forward sites for the development of housing.

3.2    The delivery of new and additional homes will help to implement Objectives 1, 2, 3 and 4 of the Mayor’s Equalities Framework “Equal Life Chances for All” (June 2014) through the creation of new homes, housing products and well-designed housing schemes.

3.3    The acquisition of this site will contribute towards the ambitions set out in the consultation for the Mayor’s vision for a diverse and inclusive city, in particular with reference to building more decent homes for Londoners. 
 

Other considerations

4.1    As with any land purchase, there is a risk that the land value may go down as well as up. Should the site(s) be secured, effort would be made to dispose of the holding expediently to minimise exposure to this risk. When disposal takes place, all efforts would be made to ensure that the expenditure incurred by the GLA (including holding and ancillary costs) are recouped. 

4.2    The undertaking of this valuation will assist in minimising the risk to the GLA in disposing of the site if acquired. 
 

Financial comments

5.1        This decision requests approval to appoint Cushman Wakefield to undertake valuation and property due diligence work in London Borough of Haringey. It also requests approval for expenditure of up-to £40,000 to carry out the works in question. 

5.2    The expenditure is available from the dedicated project budget in Land & Property Programme within Housing and Land department and will be fully expended in 2017/18 financial year
 

Planned delivery approach and next steps

 

Activity

Timeline

Procurement of the consultant from TfL’s Framework to carry out a valuations of the site(s)

Q3 2017/18

Valuation of the site(s)

Q4 2017/18

Mayoral decision to acquire site(s)

Q1 2018/19