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Brent Council cancels joint venture with HUB for 'commercial reasons'

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From Inside Housing LINK

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Brent Council has cancelled a development vehicle it had proposed to form with developer Hub for “commercial reasons”.

A report to be submitted to the council next week LINK notes that the joint venture “is not proceeding at this time” and that the council as a result is focusing on a smaller housing programme in Wembley.

Brent had been in negotiations with Hub over forming a joint venture or a development vehicle aimed at delivering 651 homes, 215 of which would be affordable.

The proposal was to transfer both council land and land owned by Hub into the vehicle. Part of the point of the vehicle was to use it to purchase Network Rail land, as homes built on land sold directly to councils don’t count towards Network Rail’s quotas.

The cabinet voted in June last year to endorse the proposal, with full details to be decided in a following meeting.

It now intends to continue with a smaller development programme on the other, non-Network Rail sites.

The council also provided seed funding of £1.6m to the project, aiming to secure £8m of grant funding from the Greater London Authority (GLA) for land acquisition.

One of the sites to be funded with GLA money, Ujima House, was purchased in June last year after the approval of the plans. 

Inside Housing has asked Brent Council about its alternative plans for funding this purchase.

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