MD3521 Guarantee for the Brownfield, Infrastructure and Land agreement at Silvertown Quays

1.1.    Silvertown Quays (SQ) is a 60-acre development site in the Royal Docks Enterprise Zone, owned by GLA Land and Property Ltd (GLAP). In June 2013, following a regulated procurement for a development partner to deliver a mixed-use development at SQ, GLAP entered into a Master Development Agreement (MDA) with the developer, The Silvertown Partnership LLP (TSP) and BREPS LLP. TSP had an outline planning permission granted in August 2016.

1.2.    The site is currently under development in phase one; plot 6 recently completed 106 affordable homes with The Guinness Partnership. The remaining parts of the site are at different planning and design stages. Plot 1D2D is expected to be the next plot to progress within phase one; this will deliver a further 336 affordable homes. A planning application was submitted in December 2022 (with amendments made in October 2023 and December 2024). This application was approved at London Borough of Newham’s (LB Newham’s) planning committee in December 2025, for around 7,000 homes; this includes 30 per cent affordable housing by habitable room.

1.3.    More historic detail and background relating to the site can be found in Mayoral Decision (MD) 3443, MD2423 and MD2965.

1.4.    The relevant MDs are listed below:

•    MD2280 (May 2018) – approval of the change of control under the MDA
•    MD2523 (October 2019) – approval for annual spend and income; and a note regarding potential changes to the MDA, to secure affordable housing policy compliance
•    MD2784 (September 2021) – approval to enter into a deed of variation to the MDA, to facilitate changes in counterparty identity in TSP; and an increase in affordable housing to 50 per cent
•    MD2965 (March 2022) – Homes England (HE) funding
•    MD3160 (November 2023) – budget approval for commercial and legal fees
•    MD3423 (September 2025) – proposed variations to the MDA
•    MD3443 (November 2025) – proposal to enter into a joint venture (JV) at SQ
•    MD3452 (March 2026) – approval to enter into the HE facility agreement and security package at SQ
•    MD3487 (March 2026) – approval to provide a parent company guarantee from the GLA for the Brownfield, Infrastructure and Land (BIL) grant agreement from HE to TSP.
 

2.1.    This BIL funding is intended to bridge an identified viability gap; and address market failure. This ensures the site can progress to development, in line with planning approvals and the strategic objectives (in this case, those of the GLA’s regeneration and housing programmes). The grant supports the delivery of infrastructure (dock wall repairs, and the delivery of the Royal Victoria Dock bridge) that facilitates the construction of new homes and commercial space.

2.2.    Delivery of the new Royal Victoria Docks bridge will be part-funded by the grant. This is critical to connectivity across SQ and the wider area (up to Custom House). It will improve public-transport access for residents in SQ and the wider area. The increased connectivity and footfall are also expected to improve ground-floor and non-residential activation in the SQ masterplan area. This includes supporting events in the public realm and commercial spaces. The bridge makes up a key part of the character area for Silvertown Centre and Mill Square.

2.3.    The availability of the grant is time-limited. This ensures it remains integral to the business plan approved in MD3452 and MD3487. 
 

3.1.    Under section 149 of the Equality Act 2010 (the Equality Act), the Mayor and GLA must comply with the Public Sector Equality Duty and must have due regard to the need to:

•    eliminate unlawful discrimination, harassment and victimisation, and any other conduct that is prohibited by or under the Equality Act
•    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. 

Protected characteristics under the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have.

3.2.    The grant supports the viability of the project, by delivering site infrastructure. It enables the supply of housing in London, which will help to address problems such as overcrowding and homelessness. Evidence indicates these problems disproportionately affect specific groups, including Black, Asian and minority ethnic groups; and women. 

3.3.    The delivery of new and additional homes will help to implement the objectives of the Mayor’s Equality Diversity and Inclusion (EDI) Strategy. This includes working with housing associations, councils, developers, investors and government to increase the supply of homes that are genuinely affordable to buy or rent. This will help to tackle the inequalities experienced by certain groups of Londoners most affected by the city’s shortage of affordable homes.

3.4.    The outline masterplan has been designed to provide a substantial number of affordable homes, family homes and accessible homes, in line with the new London Plan. This will advance equality of opportunity for groups with a protected characteristic.

3.5.    LB Newham is one of the most disadvantaged boroughs in London, and one of the most diverse in terms of faith and ethnicity. The masterplan is designed to respond to the diversity of the surrounding area. In the design of the landscape and homes, it will follow all Part M building-regulation requirements to create an accessible development in the Royal Docks. 

3.6.    There is a high proportion of young people in LB Newham, compared to other London boroughs. The play space, landscaping and education facilities will create opportunities for communities to come together; and will foster good relations between diverse groups. 

3.7.    A set of EDI performance metrics has also been designed so the JV can focus on achieving positive impacts, locally and more widely. This includes apprenticeships, placements and workforce diversity targets – relating to the project itself, and to Lendlease as a counterparty to the transaction. These metrics will be reviewed regularly to ensure accountability and continuous improvement.
 

Key risks and issues

4.1.    Key risks relating to the guarantee and indemnity are set out in part 2 of this decision.

Links to Mayoral strategies and priorities

4.2.    The HE grant is consistent with the delivery plan for the Mayor’s Building More Homes programme (approved by MD3378) – particularly the commitment to establish a City Hall developer, capable of deploying public capital to unlock complex regeneration sites. The £27.1 million BIL grant will directly enable TSP to deliver the site-wide enabling infrastructure that is a prerequisite to housing delivery, at scale, on this strategic brownfield site.

4.3.    The works funded by this agreement comprise: 

•    roads and transport infrastructure
•    principal drainage and utilities
•    community infrastructure
•    strategic landscaping
•    more specifically, repairs to the dock walls and the delivery of the Royal Victoria Dock bridge.

4.4.    This work will directly unlock the delivery of up to 5,900 residential units at SQ, as part of an overall masterplan of over 7,000 homes. A specific output of the agreement is the Royal Victoria Dock Bridge. This will provide a new active travel and pedestrian connection across the dock. The bridge will improve access to and from the site; and support the inclusive, connected neighbourhood envisaged in the masterplan.

4.5.    The grant supports the objectives of the London Plan (2021), which identifies SQ as part of the Royal Docks and Beckton Riverside Opportunity Area – a strategic location earmarked for thousands of new homes and jobs. The infrastructure funded under this agreement directly contributes to the Plan’s goals of: 

•    optimising brownfield land
•    delivering mixed-tenure housing
•    creating sustainable and inclusive neighbourhoods with strong public transport connectivity.

4.6.    There are no conflicts of interest to note from any officer involved in the drafting or clearance of this decision form.
 

5.1.    The HE grant, for which a parent company guarantee is being sought in this agreement, is for the construction of a bridge and associated infrastructure, to improve transport links between the regeneration site and at Custom House.

5.2.    The construction of the bridge will be undertaken by TSP; and funded through contributions from TSP, the London Borough of Newham and the HE grant of £27.14 million.

5.3.    The grant contains a number of conditions, including:

•    completion of the bridge and associated infrastructure
•    delivery of 3,179 housing units
•    an obligation that cost overruns on the project are funded by TSP.

5.4.    In the event that the conditions of the grant are not met, TSP is obligated to refund some or all of the grant. If the project experiences a cost overrun, TSP is obliged to fund the cost overrun.

5.5.    To the extent that TSP is unable to meet their obligations, the grant guarantors (the relevant Lendlease and GLA entities) are obligated to guarantee these obligations.

5.6.    Further analysis of the guarantee is included in part 2 of this report.
 

6.1.    HE ordinarily has no statutory remit to operate in Greater London – that role and function having been transferred to the GLA (to be exercised by the Mayor) by the Localism Act 2011. HE’s statutory objects under section 2 of the Housing and Regeneration Act 2008 (which include the duty to secure the regeneration or development of land or infrastructure) were changed to exclude Greater London. Therefore, HE has no powers to give financial assistance, for those purposes, for a project in Greater London (such as the SQ site) under section 19 of that Act.

6.2.    The equivalent GLA functions are under sections 30 and 34 of the Greater London Authority Act 1999 (the GLA Act), which are exercisable by the Mayor on its behalf.

6.3.    In relation to the proposed BIL grant from HE a delegation to HE to provide the grant within Greater London was approved under MD3190.

6.4.    In relation to the proposed delegation to the Executive Director Housing and Land to finalise the terms of the proposed guarantee, section 38 of the GLA Act provides that any function exercisable on behalf of the GLA by the Mayor shall also be exercisable by, amongst others, any member of staff of the GLA, if or to the extent that the Mayor authorises and subject to any conditions imposed by the Mayor. 

6.5.    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.

6.6.    Additionally, 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: 

o    promote the improvement of health of persons in Greater London
o    promote the reduction of health inequalities between persons living in Greater London
o    contribute towards the achievement of sustainable development in the UK
o    contribute towards the mitigation of or adaptation to climate change in the UK

•    consult with appropriate bodies.

6.7.    Under section 34 of the GLA Act, which allows the Mayor to do anything that is calculated to facilitate, or is conducive or incidental to, the exercise of any of his functions (including his functions under section 30) and the Mayor’s powers (under section 38 of the GLA Act) to delegate to any GLA member of staff functions of the GLA that are exercisable by him, the foregoing sections of this report indicate that the Mayor has the power to agree to the decisions set out above.

6.8.    Please see further legal comments in Part 2 of this decision.
 

7.1.    The next steps are outlined below: