Decision details

Proposed Decision:

That the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services:

1.        Approve the sale of the propertyknown as Land at the Intersection of the M20/ M25 under the terms and conditions of an Option Agreement dated 11 June 2020;

2.        Confirm the Director of Infrastructure’s decision under delegated authority to dispose of the property known as Land at Intersection of M20/M25, Swanley, Kent, noting that the property’s performance in terms of consideration payable exceeded the expectations underpinning the original disposal governance plan; and

3.     Delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to finalise the sale and take other actions including but not limited to, entering into relevant contracts or other legal agreements, as necessary to implement this decision.

Reason for the Decision

Under commercial negotiations with significant market improvements in the industrial land sector since the pandemic, the property option was sold exceeding the £1m decision threshold, and therefore an urgent key decision is needed to enable the transaction to complete on the 27 August 2024.

Due to the timescales involved under current contractual arrangements the council are committed to, an urgent decision from the Cabinet Member is required to confirm the appropriate approvals for the completion of this disposal by Tuesday 27 August 2024.

Background

The Constitution’s Property Management Protocol provides delegated authority to the Director of Infrastructure to agree freehold disposals up to a value of £1m, with disposals more than this figure to be determined as a key decision by the Cabinet Member.

The purchaser, Broomhill Developments (South) Limited served its Notice to ‘exercise’ its Option on 5 May 2024. Following complex negotiations, due diligence and s.123 compliance checks (including legal assurance), the anticipated consideration payable exceeds the Key Decision threshold and an urgent key decision is required to enable the transaction to complete on the 27 August 2024.

Options Considered 

·         Obtain an urgent decision – This will ensure compliance with KCC’s governance processes.

·         Follow the normal route for a decision – The property is subject to an Option Agreement which has been triggered and the Council must complete by the 27 August 2024, therefore this option has been REJECTED.

As Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, I agree to:

1.    Approve the sale of the property known as Land at the Intersection of the M20/ M25 under the terms and conditions of an Option Agreement dated 11 June 2020;

2.    Confirm the Director of Infrastructure’s decision under delegated authority to dispose of the property known as Land at Intersection of M20/M25, Swanley, Kent, noting that the property’s performance in terms of consideration payable exceeded the expectations underpinning the original disposal governance plan; and

3.    Delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to finalise the sale and take other actions including but not limited to, entering into relevant contracts or other legal agreements, as necessary to implement this decision.