Issue details
Request for approval to Dispose of Lion Green Road Development
This report requests approval from the Council , acting as Lender, to allow Brick by Brick Croydon Ltd (BBB) to bulk dispose of residential units at Lion Green Road (Red Clover Gardens) development at less that the market value and in accordance with the Funding Facility Agreement.
The report includes exempt and commercially sensitive information relating to the financial affairs of the Council, BBB and other third parties and that could potentially affect their respective commercial position and therefore are contained in the Part B of the report.
The Council has a key objective to wind down the activities of BBB and this will only be achieved once all developed units within BBB have been disposed of at the best consideration possible considering current market conditions. Red Clover Gardens development is expected to reach practical completion soon, and it is expected the exchange for the sale will be completed within a few days of this date.
Decision type: Key
Reason Key: Expenditure > £1,000,000;
Decision status: For Determination
Wards affected: Coulsdon Town;
Notice of proposed decision first published: 18/04/2023
This decision will be taken under urgency procedures.
Reason for urgency:
The Council needs to provide BBB a decision so that it can sell a key site so BBB can pay the loan back. Waiting 28 days could delay the sale and create financial implications for the Council and BBB.
Anticipated restriction: Part exempt - View reasons
Financial Impact: Expenditure or savings of up to £5,000,000;
Decision due: Not before 26th Apr 2023 by Corporate Director of Resources (Section 151)
Lead member: Cabinet Member for Finance
Lead director: Corporate Director of Resources (Section 151)
Department: Resources Directorate
Contact: Nish Popat, Interim Head of Corporate Finance Email: nish.popat@croydon.gov.uk.