MD2280 Silvertown Quays

1.1 GLA Land and Property Ltd (GLAP) entered into a Master Development Agreement (MDA) with The Silvertown Partnership (TSP) on 7 June 2013 to deliver a mixed-use development on the Silvertown Quays (SQ) site, within the Royal Docks. This followed an OJEU compliant bidding process commenced by the former London Development Agency and concluded by the previous Mayor.

1.2 The draft outline planning application for the SQ Scheme was approved by GLAP in July 2014 and the borough’s decision to grant outline planning permission was allowed by the GLA under the previous Mayor in December 2015. TSP is now required to proceed with reserved matters to obtain detailed planning permission for Phase 1 before being able to progress.

1.3 To achieve phase 1 detailed planning and to proceed with phase 1 development, significant funding is required. TSP has now agreed terms with the JV to provide finance to TSP. In addition, the JV will acquire the shares of CPL and FBL. TSP will remain in place as the developer and some non-material changes to the MDA will be made to reflect the change in shareholders in TSP.

1.4 Although no material changes are being made to the MDA and TSP remains in place, the new shareholdings could be viewed as a corporate restructure of TSP as they will be able to draw upon the robust technical and financial capabilities of Lend Lease’s significant experience of delivering large scale development and sourcing funding for such schemes. The JV will provide an alternative guarantor to TSP, replacing BREPS.

Next Steps following the transaction

2.1 TSP intends to proceed with obtaining detailed planning permission for Phase 1 and to develop Phase 1 which includes the delivery of 850 homes and c500,000 sqf of commercial space, meeting all “minimum requirements” for Phase 1, as required under the MDA.

2.2 As anticipated by the MDA, TSP will proceed to develop the remainder of the SQ site over a period of phases during the next 10-15 years. Using the existing provisions in the MDA, TSP will provide updated business plans for approval by GLAP and as such, the GLA will remain in close partnership with and have influence over TSP during the lifetime of the project. TSP will be required to meet all minimum requirements set in the MDA and will seek to maximise opportunities across the SQ site. As part of a funding package for the SQ scheme it is proposed that the JV acquires an interest in CPL

Development Management

2.3 Lend Lease is proposing to perform the Development Management role for Phase 1. The terms of the Development Management role (and costings for the role) will remain unchanged from those in the MDA.

2.4 The GLA has carried out a review of the JV with its external advisors and are satisfied that they have the appropriate experience and access to funds to deliver Phase 1 of the approved scheme.

Milestones

2.5 TSP has requested some extensions to the relevant milestones going forward so that once the transaction has been affected the required timetable set out in the MDA will be updated to reflect the passage of time and that the relent target dates accord with the latest programme for the scheme. As provided for under the MDA, GLAP is able to agree to such extensions to milestone dates, in its absolute discretion. The proposed revised dates that are recommended for approval below have been tested rigorously and are considered reasonable and are as detailed below in table 1. Other milestone date sin the MDA will remain unchanged.

2.6 To give GLAP additional comfort that TSP will progress the scheme at pace, GLAP has secured additional milestones for the submission of all of the Phase 1 Reserved Matters Applications and the interim (i.e. stage) completion of Phase 1. The proposed milestones are detailed below in table 1.

2.7 It should be noted that an extension of the Long Stop Date for any of the Milestone Events is only allowable if there is a ‘Delay Event’ as defined in the MDA.

Table 1:

3.1 Under section 149 of the Equality Act 2010, as public authorities, the Mayor and the GLA are subject to a public-sector equality duty and must have ‘due regard’ to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status.

3.2 Throughout the decision-making process relating to the approvals sought in this paper to facilitate this significant development moving forward to delivery, due regard has been had to the ‘three needs’ outlined above. The housing shortage in London disproportionately negatively affects people with certain protected characteristics. Increasing the supply of housing, and in particular affordable housing will help to achieve positive impacts in line with the ‘three needs’.

3.3 The proposed changes to the project are expected to have a positive impact on the timetable of the delivery of housing products which will generally improve access to housing across different economic and social groups.

Financial comments are in Part 2.

5.1 Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a
general power to do anything which he considers will further one or more of the principal purposes
of the GLA as set out in section 30(2) which are:

i. Promoting economic development and wealth creation in Greater London;
ii. Promoting social development in Greater London; and
iii. Promoting the improvement of the environment in Greater London

and, in formulating the proposals in respect of which a decision is sought, officers confirm they
have complied with the GLA’s related statutory duties to:

• Pay due regard to the principle that there should be equality of opportunity for all people;
• Consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and
• Consult with appropriate bodies.

5.2 In exercising the power contained in section 30(1) of the GLA Act, the GLA must have regard to the matters set out in sections 30(3-5) and 33 of the GLA Act, and also the Public Sector Equality Duty in section 149 of the Equality Act 2010 as set out above in section 3.

5.3 Sections 1-3 of this report indicate that the decision requested of the Mayor is within the GLA’s statutory powers.