Decision Maker: Cabinet Member for Finance, Property and Regeneration
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Short term sublease of circa 9.000 sq ft of
1. That this report be exempt from disclosure by virtue of the Local Government Act 1972, Schedule 12A Part 1, paragraph 3 (as amended), in that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information).
2. That the Cabinet Member for Finance, Property and Regeneration delegated authority to the Executive Director of Finance and Resources to Direct that CityWest Homes Limited enter into a sub-lease with the organisation detailed in the report, based on the agreed terms as summarised within this report confirming in the agreement for lease the consent of Westminster City Council, in their capacity as CityWest Homes Limited’s guarantors but also as the party liable for all contractual obligations and debts in the name of CityWest Homes Limited as per the Termination Agreement dated 24 December 2018.
3. That the Cabinet Member for Finance, Property and Regeneration noted that as the leasehold interest to be sublet is vested in CityWest Homes Limited, CityWest Homes Limited need to resolve to grant the sublease.
4. That the Cabinet Member for Finance, Property and Regeneration noted that the Termination Agreement dated 24 December 2018 states, at clause 17.1, that all contracts in the name of CityWest Homes Limited, to include that of 21 Grosvenor Place, be novated or assigned to the Council or terminated in due course before or after 1 April 2019.
5. That the Cabinet Member for Finance, Property and Regeneration agreed that once the transaction goes through of the sub-lease with the organisation referred to in the report, that all three leases at 21 Grosvenor Place in the name of CityWest Homes Limited be assigned to the Council, subject to the permission of the landlord being obtained.
Reasons for Decision
The decision will:
· Enable surplus space to be occupied by an external party without undertaking/incurring further works and costs
· Significantly reduce the Council’s net liabilities on the office space virtually up to the date to expiry of the head-lease.
· Provide a contribution to the Council’s likely dilapidations liability upon expiry of the head-lease
· A review of other options including surrendering or assigning the lease were undertaken, with the sub-let option considered to be the most favourable.
Publication date: 19/11/2019
Date of decision: 18/11/2019