MD3514 London & Partners office – Stewart House lease guarantee

1.1.    London & Partners Limited (L&P) is the growth agency for London. Its business plan includes activities funded by the Mayor in respect of the Helping Local Economies to Thrive, Boosting London’s Growth Sectors, and Supporting Londoners to Benefit from Growth programmes. 

1.2.    L&P staff are currently co-located with some GLA staff at the London Fire Brigade (LFB) building at 169 Union Street. The GLA is the guarantor of the 169 Union Street licence between L&P and LFB, as agreed in MD2737, published in February 2021. As LFB is not renewing its lease at Union Street, L&P must find a new office this year. 

1.3.    Following consideration of a shortlist compiled with external agency support, the L&P Board selected Stewart House, a University of London-owned property on Russell Square. No other central London options of a comparable size competed on value. 

1.4.    The office space has also been refurbished, reducing fit-out costs. 
 

2.1.    As part of the negotiations of the terms of the Stewart House lease, the landlord has stated that they require a guarantor who will guarantee the tenant’s obligations under the lease. This decision seeks the Mayor’s agreement that the GLA takes on the role of guarantor. The guarantor covenant requires the guarantor to:

•    guarantee payment of rent and performance of the tenant’s lease obligations
•    indemnify the landlord against losses arising from tenant default
•    in certain circumstances (such as forfeiture or disclaimer), either:

o    take a new lease for the remaining term
o    cover rental payments for up to six months until the property is re-let.

2.2.    The guarantor’s liability continues until the lease ends, or the tenant is released from its obligations under the Landlord and Tenant (Covenants) Act 1995. 

2.3.    Due to the sensitivity of the commercial arrangements regarding the lease agreements, the maximum contractual liability is disclosed in part 2 of this decision (which remains confidential). 

2.4.    A GLA officer, having consulted the Mayor’s Office, has signed a ‘letter of comfort’ stating that the GLA is supportive of the proposal in principle. But both the University of London and L&P have asked that the approval be formally expedited as soon as possible. given that L&P has been in occupation of the premises since 27 April 2026.

2.5.    It is also proposed that £500,000 be provided to L&P to cover the cost of its ‘double rent’ of the current and new offices, between April and December. This will be provided from the ringfenced L&P reserve held by the GLA.
 

3.1.    Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities (including the GLA) must have due regard to the need to:

•    eliminate discrimination, harassment, victimisation, and any other conduct that is prohibited by or under the Equality Act 2010
•    advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it
•    foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

The protected characteristics are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

3.2.    Due regard must be had at the time a decision is being considered. The duty is non-delegable and must be exercised with an open mind.

3.3.    No issues have been identified that impact groups with protected characteristics.
 

Key risks and issues

Link to Mayoral strategies and priorities

4.1.    L&P is delivering elements of the Helping Local Economies to Thrive, Boosting London’s Growth Sectors and Supporting Londoners to Benefit from Growth Delivery Plans. The L&P Chief Executive is the lead for the London Growth Mission, and sits on the associated board, responsible for the London Growth Plan. 

 
Declarations of interest

4.2.    No one involved in drafting and clearing this document has any conflicts of interests to declare. 

5.1.    This decision seeks approval for the GLA to act as guarantor for L&P’s 10-year lease of Stewart House, Russell Square, from the University of London. The costs of the lease have been incorporated into L&P’s financial planning, but should the GLA be required in future to spend in its capacity as guarantor, it will need to be financed partly from the L&P ringfenced reserve, and partly from other reserves. 

5.2.    Approval is also being requested to spend £500,000 to cover the cost of the double rent of the current and new offices. This proposed spend is financed by the L&P ringfenced reserve. This is a new request for reserve use that was not included in the GLA budget for the 2026-27 financial year. All appropriate budget adjustments will be made.
 

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

•    promoting economic development and wealth creation in Greater London
•    promoting social development in Greater London
•    promoting the improvement of the environment in Greater London.

6.2.    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
•    co-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 UK
•    contribute towards the mitigation of or adaptation to climate change in the UK
•    consult with appropriate bodies.
 

7.1.    The next steps are as follows: