Development services of real estate

Description

A development agreement relating to the development of land and buildings at the Broadway, Wimbledon SW19. YMCA St Paul's Group (‘YMCA’) are entering into a development agreement (‘DA’) with Thornsett Wimbledon Limited (‘Thornsett’) relating to the development of land and buildings at the Broadway, Wimbledon SW19 1NL. Pursuant to the terms of the DA the following will occur: 1) YMCA will transfer the freehold of the site on which the existing YMCA building is situated (the ‘Existing Site’) to Thornsett. The consideration for this transfer will be Thornsett's obligation to part-fund the construction of the new YMCA building on neighbouring land owned by the YMCA. 2) Thornsett will grant an interim leaseback of part of the Existing Site to YMCA. 3) Under the terms of the DA, Thornsett will be appointed to provide various development management services in relation to the construction of the new YMCA building on the neighbouring land, including assistance with planning matters and the procurement and management of the building contractor to be appointed to construct the building. 4) Thornsett will be appointed by YMCA to carry out various demolition and enabling works on the land on which the new YMCA building is to be constructed. Such appointment will be made under a separate demolition and enabling works contract to be entered into between YMCA and Thornsett. 5) YMCA will appoint the building contractor procured by Thornsett to carry out the construction of the new YMCA building. This appointment will be made under a separate form of building contract between YMCA and the building contractor which will set out the specification to which the new building must be constructed. It is intended that the new YMCA building will provide 120 residential rooms plus ancillary and community facilities. 6) Thornsett will provide a cost underwrite guarantee in relation to this building contract. 7) Once the new YMCA building has been constructed, YMCA will move from its existing building to the new building and will surrender its interest under the interim leaseback. 8) Thornsett will then carry out the new residential development on the existing site. This will comprise of the construction of approximately 136 private sale units and possibly some commercial units. 9) The DA will contain a profit sharing mechanism which will provide for a profit payment from one party to the other, depending on the profit made on the respective elements of the development (i.e. profit made on the residential development vs profit made on the development of the new YMCA building). 10) Thornsett Group plc will act as Thornsett's guarantor under the DA.