URL: https://barnet.moderngov.co.uk/ieDecisionDetails.aspx?ID=9491

Decision Maker: Director of Housing, Economy and Placemaking

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: This report concerns a request by the Council’s joint venture partner Related Argent (RA) for their plot development subsidiary RACAL IUK BXIP2 PLOT 202 Limited, to grant under-leases on individual residential units within the Plot 202 development ahead of full Practical Completion of the new building. The Plot 202 head-lease dated 17 October 2022 between (1) London Borough of Barnet (2) RACAL IUK BXIP2 PLOT 202 Limited and (3) the Related Companies L.P prohibits the head tenant from granting under-leases until after full Practical Completion (PC) is certified, without consent of the Landlord (i.e. the Council as freeholder).   The building will not achieve full PC until early-mid January, but RA's contract administrator (Cast) expect to be able to confirm partial PC within the next 2 weeks and/or provide the Council with information that Cast has determined is satisfactory regarding the state of completion of the relevant part of the building, and that is deemed sufficient for purchasers to move in before Christmas.   The head tenant is fully responsible for the property and its condition, and the Council has the benefit of usual tenant covenants to protect its position as freeholder.   There is therefore very limited risk to the Council in making this decision, for the reasons given in this report, and so enabling the plot developer to grant occupational under-leases to incoming residents.

Content: This report concerns a request by the Council’s joint venture partner Related Argent (RA) for their plot development subsidiary RACAL IUK BXIP2 PLOT 202 Limited, to grant under-leases on individual residential units within the Plot 202 development ahead of full Practical Completion of the new building. The Plot 202 head-lease dated 17 October 2022 between (1) London Borough of Barnet (2) RACAL IUK BXIP2 PLOT 202 Limited and (3) the Related Companies L.P prohibits the head tenant from granting under-leases until after full Practical Completion (PC) is certified, without consent of the Landlord (i.e. the Council as freeholder).   The building will not achieve full PC until early-mid January, but RA's contract administrator (Cast) expect to be able to confirm partial PC within the next 2 weeks and/or provide the Council with information that Cast has determined is satisfactory regarding the state of completion of the relevant part of the building, and that is deemed sufficient for purchasers to move in before Christmas.   The head tenant is fully responsible for the property and its condition, and the Council has the benefit of usual tenant covenants to protect its position as freeholder.   There is therefore very limited risk to the Council in making this decision, for the reasons given in this report, and so enabling the plot developer to grant occupational under-leases to incoming residents.

Date of Decision: December 11, 2024