Proposed Additional Disposals 2015/16

In August 2015 DMPC approved the 2015/16 disposal schedule – DMPCD 2015 89. This report now seeks approval to dispose of 3 additional properties. These proposals will continue the delivery of revenue savings and the generation of capital receipts to meet the proposed 2015/16 and future years’ budget, investment and savings targets. The 2015/16 capital receipt target is £196m.
In total the properties above are anticipated to generate capital receipts of £32.7m, and to save annual revenue costs of £1.7m.

The DMPC is asked to approve the
1. ‘in principle’ disposal and marketing of 2 surplus properties (Pierson House and Ponton Road), subject to alternative provision for existing functions at these sites being in place prior to completion of the sale;
2. ‘in principle’ disposal and marketing of 1 surplus property (Douglas Webb Section House and Operational Facilities), subject to alternative provision for existing functions at this site being in place prior to completion of the sale and MOPAC approval of the final sale terms.

1. Introduction and background

1.1 The Police and Crime Plan includes the release of under-utilised assets as means to generate receipts to be invested back into frontline policing, in technology and to modernise the remaining estate.

1.2 Rationalisation of the estate is one of the key components of the Corporate Real Estate programme enabling MOPAC to maximise the use of accommodation and minimise estate costs. As part of this programme assets will be disposed of when they become surplus to requirements, generating capital receipts for the capital programme.

1.3 All operational properties that are surplus to operational requirements and those residential properties with a value in excess of £1 million, are marketed and sold in accordance with the established disposal procedures for private treaty sales. Sites are marketed for a minimum of four weeks, with advertisements placed in the national and local property press, and where possible a board placed on site. MOPAC seeks best bids, unconditional upon the receipt of planning permission.

1.4 In accordance with MOPAC Scheme of Delegation and Consent any sales with a value under £1 million may be completed by way of delegated powers and reported retrospectively via the appropriate Estates Update Paper at the earliest opportunity. Should a disposal with a value below £1 million have any unusual features or be of special interest, then MOPAC will have the opportunity to approve the final sale.

1.5 Any offers considered must reflect MOPAC’s standard requirement for a five year forward sale claw-back clause. This is to enable MOPAC to benefit in any uplift in value in the event that the purchaser subsequently sells the property at a price in excess of that paid to MOPAC within an agreed period of time. Where appropriate, planning “overage”, enabling MOPAC to share in the value of a larger than anticipated planning consent, is also put in place.

2. Issues for consideration

2.1 In accordance with the scheme of delegation and consent the Deputy Mayor for Policing and Crime (DMPC) is requested to approve the ‘in principle’ disposal and marketing of 3 properties as listed below, detailed in Appendix 1 and in Part 2 of this report, to contribute towards generating capital receipts for the capital programme.

2.2 The following surplus properties are now proposed to be sold

• Pierson House, Eric St, Tower Hamlets
• Ponton Rd, Nine Elms, Wandsworth
• Douglas Webb Section House and Operational Facilities, Sipson Rd, Hillingdon

2.3 Other relevant information specific to sites is

2.3.1 Pierson House – the site is vacant and there are no public facing facilities.

2.3.2 Ponton Rd – there is no public access facilities at this site. The current functions sited here are part of a wider consolidation of MPS sites and are scheduled to be relocated.

2.3.3 Douglas Webb Section House and Operational Facilities – there is no public access facilities at this site. The operational facilities sited here are part of a wider consolidation of MPS sites and are scheduled to be relocated to Hendon.

3. Financial Comments

3.1 The target for capital receipts for 2015/16 is £196m. The sites noted above are expected to generate capital receipts in excess of £32.7m which will contribute to the target receipts to help fund the 2015/16 and future years’ capital programme.

3.2 The aggregated revenue costs of the maintenance and rates for the properties to be sold, based on 2013/14 costs, is £1.7m.

4. Legal Comments

4.1 There are no direct legal implications arising from the recommendations contained within this report, which seeks approval for the sale of surplus properties and the early surrender of leases detailed above and in Part 2.

4.2 MOPAC has the power to dispose of surplus properties (including land) under paragraph 7 (2) (b) of Schedule 3 of the Police Reform and Social Responsibility Act 2011 (“the Act”).

4.3 The Commissioner may also do anything which is calculated to facilitate, or is conducive or incidental to acquiring and disposing of property (apart from land) but only with the consent of MOPAC under paragraph 4 (2) (b) of Schedule 4 of the Act.

4.4 The report confirms that the disposals will generate capital receipts that will assist MOPAC in securing the maintenance of the MPS and ensure that it is efficient and effective.

5. Equality Comments

5.1 In line with corporate real estate principles it is essential that those buildings provided for longer term use are fit for use, compliant and provide suitable accessibility. An identified Equality Impact Assessment for the CRE programme has been completed at a strategic level and screenings are undertaken on each property identified for disposal, looking at Equality & Diversity issues from both a community and MPS staff perspective.