MD2534 Vittoria Wharf – Disposal of LLDC’s residual freehold interest

Vittoria Wharf is located on the corner of Stour, Beachy and Roach Roads in Fish Island E9, directly west of the Queen Elizabeth Olympic Park. LLDC owns a portion of the Wharf, acquired by agreement under the London Development Agency (Olympic & Legacy) CPO 2005, for the delivery of a pedestrian bridge connecting Queen Elizabeth Olympic Park to Hackney Wick Fish Island.

The majority of LLDC’s portion of the Vittoria Wharf building was demolished to enable construction of the bridge, now known as Stour Bridge (formerly referred to as H16 bridge) leaving a currently inaccessible, dilapidated and asbestos roofed triangle of the building measuring 231 sq. m. The remainder of the Vittoria Wharf building is owned by Palm Lane Ltd.

The plan below (see PDF decision form) illustrates Stour Bridge, the western approach to the bridge and shows the residual triangular portion that remains, immediately to the north with the redline delineating the boundary with Palm Lane.

Due to the configuration of the internal layout, there is no physical boundary between LLDC’s ownership and Palm Lane’s, which has proved difficult to manage over the years.

Following consideration of options for LLDC’s remaining portion of the building including demolition, acquisition of Palm Lane’s interests in the building and refurbishment, LLDC’s Executive Management Team agreed to dispose of the LLDC’s residual freehold interest to the adjoining landowner, Palm Lane for best consideration at an agreed price.

LLDC commissioned an independent valuation of its portion of Vittoria Wharf who have confirmed the agreed sale price is best consideration. This is set out in the part 2 form.

Mayoral consent is required under paragraph 4.4 of the LLDC Governance Direction 2019 as the disposal is a 'land transaction' under the National Lottery Funding Repayment Agreement.

With the bridge now constructed and open to the public, disposing of LLDC’s interest to the adjoining landowner brings the ownership back together. It enables Palm Lane the opportunity to reconsider the consented re-development of their site and the bridge as a whole. Redesigning the site to account for the additional land will, aside from improving density:

• enable a more legible connection to the Park;
• better support the strong street pattern (and corners at Beachy/Stour Rd);
• offer the opportunity to create new buildings that can accommodate the bridge approach levels; and
• respond appropriately to the new Sweetwater development on the eastern side of the water.

LLDC have considered likely potential impacts and conclude there should be no adverse impact on equalities issues and any protected characteristic groups. The building is vacant, and unifying ownership is a positive step as it enables a cohesive management approach until the site is redeveloped as a whole.

Key risks and issues

There is a risk for LLDC should the disposal not proceed that once the building is handed back by the bridge contractor, LLDC will begin to incur unbudgeted void costs (water, gas and electric standing charges, security, graffiti removal and health & safety compliance).

There is a small additional risk to both the GLA and LLDC that LLDC could be seen to fetter the purchaser’s ability to redevelop their own site if LLDC do not proceed with the disposal in so far as LLDC’s residual portion prohibits the purchaser from implementing their existing and consented scheme.

Links to Mayoral strategies and priorities

This proposal will provide the adjoining landowner the opportunity to re-design their development into a scheme which aligns with the Mayor’s Good Growth & Culture and Housing priorities.

Impact assessment and consultations

LLDC considered the options for its remaining portion of the building. LLDC discounted refurbishment given the physical constraints of the building including limited access, the low likelihood of achieving Secure by Design, the significant capital costs of refurbishment and low anticipated return on investment. The sale price to the adjoining landowner was agreed following negotiations between LLDC’s and the adjoining landowner’s Royal Institution of Chartered Surveyors registered valuers and is ‘best consideration’. Disposing of LLDC’s interest removes a significant liability and capitalises on the marriage value created.

The capital receipt from the disposal of the land will be factored into LLDC’s 2020-21 budget submission to the GLA and will therefore be taken into account in the determination of the GLA’s capital funding support for LLDC in the 2020-21 budget process.

Section 30 of the Greater London Authority Act 1999 (as amended) 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.

This report indicates that the decision requested of the Mayor falls within his statutory powers.