MD1636 East of Kent Avenue (EKA) site

Type of decision: 
Mayoral decision
Code: 
MD1636
Date signed: 
24 March 2016
Decision by: 
Boris Johnson MP (past staff), Mayor of London

Executive summary

GLAP has been in discussions with Ford Motor Company (FMC) to acquire the 2.3ha East of Kent Avenue (EKA) site. The site is adjacent to the Mayor’s land holding at Beam Park, which is being marketed for residential development through the London Development Panel. Acquiring the EKA site will add value and increase the regeneration and development opportunity at Beam Park, delivering more homes for Londoners in the London Riverside Opportunity Area.

Following detailed negotiations and due diligence processes, agreement has been reached between Ford and GLA Land and Property Ltd (GLAP) to acquire the EKA site subject to contract and Mayoral approval. Further to this agreement has been reached between GLAP and FMC to allocate funding towards the upgrading of Kent Avenue pending its adoption by the London Borough of Barking and Dagenham. 

Once the site is acquired it will be incorporated into the Beam Park disposal, which is due to complete by mid-2016 following the selection of Countryside Properties (UK) Limited in January 2016 as approved by HIG and pending MD approval.

 

Decision

That the Mayor approves the expenditure outlined in the restricted appendix to acquire the EKA site and to place funds in an escrow account pending the appointment of a development partner for the Beam Park site.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1.    Further to the Housing Investment Group in July 2014 approval to undertake due diligence and negotiations GLAP has come to an agreement with Ford Motor Company (FMC) to acquire the 2.3ha EKA site which is adjacent to the GLAP’s land holding at Beam Park in the London Riverside Opportunity Area. As shown in the plan at appendix 1 the EKA site runs the length of Kent Avenue which prevents access from the Beam Park site to the road and onward through any future development at the Ford Dagenham Stamping and Tooling Plant (DSTO) site which is currently being marketed by FMC for mixed-use residential development. 

1.2.    An options appraisal and viability assessment undertaken in 2015 identified that GLAP should consider acquiring the EKA site to remove the risk of adverse development which could negatively impact on values at Beam Park and also enable connections through the DSTO to Dagenham Dock station to improve Beam Park Plot 1 (formerly PTA) levels and values on the western edge of the Beam Park site.

1.3.    Once the acquisition is complete in  March 2016 the EKA site will be included in the Beam Park disposal which is currently being procured thorough the London Development Panel. Bidders for the Beam Park site were asked to include the EKA site within their submissions. The Housing Investment Group approved the appointment of Countryside Properties (UK) Limited on the 13 January 2016.

 

Objectives and expected outcomes

2.1.    The acquisition is anticipated to be complete by end March 2016 and the draft terms were included in the Beam Park disposal recommendation to the Housing Investment Group in January 2016.

2.2.    Incorporating the EKA site into the Beam Park development provides an opportunity to increase the number of homes to be delivered, but importantly will facilitate a better quality development to create a sustainable community with improved access to public transport which will add value, contribute to placemaking, local policy objectives and increase attractiveness of the development.

 

Equality comments

There are no equality implications. The initial acquisition of the EKA site will have no impact on the end users (future residents) and therefore no impact on any of the protected characteristics. 

 

Other considerations

4.1.    Key Risks and Issues 
FMC have board approval to complete the sale of the EKA site by 31 March 2016. GLA is also keen to complete the acquisition by this date to enable the integration of the EKA site into the Beam Park disposal. 

4.2.    Links to Mayoral Strategies
The London Plan and the London Riverside Opportunity Area Planning Framework (LROAPF) identify brownfield sites in East London as a means to meeting London’s needs for housing and employment. The Mayors Housing Strategy sets out the need to accelerate housing development to meet London’s need for 42,000 new homes per annum. The EKA site assists and increases the deliverability of new homes – including affordable housing – in the London Boroughs of Barking & Dagenham. Development at Beam Park is also integral to the Rainham and Beam Park Housing Zone which is a key Mayoral priority and means of accelerating new home delivery in East London.

4.3.    Impact Assessments and Consultations 

GLAP is working in close partnership with the London Boroughs of Barking & Dagenham and London Borough of Havering on the future development of the EKA and Beam Park sites.   

 

Financial comments

See Part 2 Confidential facts

 

Investment and Performance Board

Due to the nature of this report it was considered by HIG and not IPB.  At the 3rd July HIG, there was a recommendation which was approved  ”Agree to continue negotiations to progress option 2 - the purchase of Ford land on Beam Park and land to provide access to Dagenham Dock Station to ensure the minimum is achieved, should the purchase of the entire site not be possible”

 

Planned delivery approach and next steps

Activity

Timeline

(target date)

Complete acquisition

31st March 2016