Multi-functional buildings construction work

Description

Wycombe District Council (‘the Council’) is proposing to lease land (on an income sharing 125 year term) at Collins House Desborough Road and 32 Bridge Street, High Wycombe to Housing Solutions Limited (‘the Buyer’) for Buyer to independently fund demolition and mixed-use redevelopment of site to deliver 52 flats and 5 shop units. Agreement for Lease has obligations on Buyer to submit and obtain planning permission (on which grant of lease is conditional). Lease will prohibit sub-letting the completed residential units at a premium for a 10 year period. During that period Buyer may only rent units on assured short-hold tenancies. Buyer will also lease back completed shop units to Council. If Buyer has not opted to implement planning permission for redevelopment of site within 18 months of grant of the lease, Council will have option to call for an assignment of the lease to nominee, or forfeit the lease, upon reimbursement of up to 50 % of Buyer's planning costs, capped at 62 500 GBP. The estimated costs to redevelop the site are approx. 8.5m GBP. Council to pay Buyer 800 000 GBP premium for sub-lease to shop units on practical completion of building. Under the lease Buyer to pay an initial rent to Council of 30 000 GBP per annum from earlier of practical completion, or date falling 3 years from date the Buyer starts work on site, and subsequently 7.7 % of net rents receivable by the Buyer from residential element of development. If practical completion delayed beyond 3 years from date Buyer starts works, starting rent of 30 000 GBP will become payable, subject to increase for each year practical completion delayed based on agreed formula. After 10 years, Buyer permitted to dispose of its leasehold interest at a premium subject to reimbursing % of gross proceeds to Council. If scheme does not progress Buyer is reimbursed some of its costs incurred in seeking planning permission under Agreement for Lease (or Exclusivity Agreement) to a limit below the EU services threshold.