Agenda item

See agenda for Cabinet Committee Asset Disposals, 11^th July 2024 for the published reports.  Recommendations to Cabinet to be published in a supplementary agenda after the Cabinet Committee meeting.

(a)  That the Draft Formal Site Development Plan (the Draft Formal Site Development Plan is the form that is presented to Cabinet) be approved.

(b)  Approved the Council entering into documentation to give effect to the Formal Site Development Plan and which is anticipated to comprise (i) a Deed of Variation to the Council’s Option Agreement with Stoke Wharf Development (SWD) LLP; (ii) (in its capacity as a member of Slough Urban Renewal LLP (SUR) the Sale Contract between SWD (of which SUR is a member) and the Purchaser; (iii) (once the Sale Agreement between SWD and the Purchaser has become Unconditional) a Transfer of the Council’s land to the Purchaser (pursuant to the Option Agreement); and (iv) (once the Sale Agreement between SWD and the Purchaser has becomes Unconditional) a Works Access Agreement between the Council and the Purchaser.

(c)  That delegated authority be given to the Executive Director of Regeneration, Housing and Environment, in consultation with the Lead Member for Financial Oversight and Council Assets and the Executive Director of Finance and Commercial to (i) approve the final form of the Draft Formal Site Development Plan that is presented to the SUR Business Board for its approval; and (ii) to approve the final terms of the documentation required to give effect to the final form of the Draft Formal Site Development Plan.

The Lead Member for Finance, Council Assets and Transformation introduced a report which set out recommendations associated with the disposal of the Council’s land at Stoke Wharf which was proposed to be sold to a third party for development as part of the larger Stoke Wharf site.

The Cabinet Committee for Asset Disposals had met on 11^th July 2024 to review the report and had agreed the recommendations to Cabinet as set out in the report.

The background to the site and the land arrangements were summarised.  The disposal of the Council’s land at Stoke Wharf was in accordance with the Stoke Wharf Disposals Strategy agreed by the Cabinet Committee on 18 July 2022. The Lead Member highlighted that agreement to the recommendations would contribute to the reduction in the Council’s future financial commitments, generate disposal receipts at the earliest opportunity and reduce the Council’s borrowing requirements. The proposed land and site sale have been subject to a due diligence process and the Council’s land sale reflected best value and best consideration reasonably obtainable for the disposal of the assets in accordance with section 123 of the Local Government Act 1972.

The disposal of the Council’s land would enable the Council to simplify and reduce its land portfolio holding and its corporate arrangements including progressing towards the winding up of SUR which would help the Council to focus on its core activities and services.

The disposal process was outlined.  In June 2023 Haslams Marketing undertook an assessment of the site to gauge market interest and consider the optimal time to market the Site. Haslams  recommended a guide price of offers in excess of £12 million. The Site was marketed in February 2024. A deadline for bids was agreed of 10 April 2024. In total there were 11 interested parties and five bids were received. The preferred Purchaser was in excess of the guide price of £12 million and the name of the Purchaser, together with the reasons why they have been selected were set out in Confidential Appendix 1.

The report contained Confidential Appendices 2, 3 and 4 which provided a commercial and financial summary, a valuation report and EY asset appraisal and Disposal Framework calculations. 

The report also set out in detail the key activities and milestones with exchange anticipated at the end of August 2024, following partner approvals in July 2024.  The planning considerations were discussed as the new purchaser planned to submit a new planning application for the site, which meant the sales proceeds were expected in 2025 once this process was complete.

The Cabinet discussed the recommendations in detail and asked questions of Officers in relation to the timeline of events. The Cabinet  went into private session (Part 2) to discuss some of the matters set out in the confidential appendices before returning into public session.  At the conclusion of the discussion the Cabinet unanimously endorsed the recommendations set out in the report.

Resolved –

(a)  That the Draft Formal Site Development Plan (the Draft Formal Site Development Plan is the form that is presented to Cabinet) be approved.

(b)  Approved the Council entering into documentation to give effect to the Formal Site Development Plan and which is anticipated to comprise (i) a Deed of Variation to the Council’s Option Agreement with Stoke Wharf Development (SWD) LLP; (ii) (in its capacity as a member of Slough Urban Renewal LLP (SUR) the Sale Contract between SWD (of which SUR is a member) and the Purchaser; (iii) (once the Sale Agreement between SWD and the Purchaser has become Unconditional) a Transfer of the Council’s land to the Purchaser (pursuant to the Option Agreement); and (iv) (once the Sale Agreement between SWD and the Purchaser has becomes Unconditional) a Works Access Agreement between the Council and the Purchaser.

(c)  That delegated authority be given to the Executive Director of Regeneration, Housing and Environment, in consultation with the Lead Member for Financial Oversight and Council Assets and the Executive Director of Finance and Commercial to (i) approve the final form of the Draft Formal Site Development Plan that is presented to the SUR Business Board for its approval; and (ii) to approve the final terms of the documentation required to give effect to the final form of the Draft Formal Site Development Plan.