Cabinet considered the report regarding the proposed purchase of Cavalry Crescent.

The Cabinet Member for Asset Management and commercialisation, Finance and Ascot reported that Cavalry Crescent, Windsor was a former Defence Estates property consisting of 53 number 2 and 3 bedroomed houses. There were also two small parcels of land at the site that, subject to Planning Consent, could accommodate 10 new build apartments. It was proposed that the council purchase the freehold site that was on the open market.

The site would provide 53 houses and 10 new apartments to rent. The properties would be managed by the RBWM Prop Co. The site provided the opportunity to meet a range of housing need in the Borough through a variety of homes to rent in collaboration with RBWM Housing Department.

There would be refurbishment  of the properties to an agreed specification to market habitation standards and planning permission and build the 10 new residential apartments on the infill sites. The Part II element of the report included the cost of borrowing, particularly inflation on interest, capital repayment, Minimum Revenue Provision, maintenance, and management cost. In addition legal and tax advise would be taken on the final contract form, funding structure and tax implications.

The Deputy Leader of the Council & Cabinet Member for Business, Corporate & Residents Services, Culture & Heritage, & Windsor said that this was a really exciting opportunity for Windsor. It’s very rare that such an opportunity comes on the market to have 53 homes on the rental market.

Mr Bagley addressed Cabinet and asked if MRP had been correctly calculated, how much needed to be paid and could the council afford to pay the MRP.  He also asked if refurbishment was better than demolishing the properties and rebuilding.  He also said that it had been reported that the Ministry of Defence and UK Government Investments was seeking to buy back former military homes, such as more than 3,000 properties in Yorkshire, was this a risk with this investment. 

The Director for Resources informed that MRP had been correctly and there had also been a full review two years ago with another review due soon.  With regards to the development and new builds you had to think about the carbon footprint as well as value, the site was still under negotiation.

The Head of Development of the council’s property company, said that as far as they know, the government was not seeking to purchase back Calvary Crescent.  There were no plans to demolish the existing properties and that the two parcel of land would be built for affordable housing.

Cllr Jones reported that she was pleased to see the RBWM Prop Co being used as originally intended.  She asked that if the project proceeds could they be informed of property tenure and details of open space.  The Lead Member reported that tenure was in the business plan and there were no plans to change this.

Resolved unanimously:  that Cabinet notes the report and:

i) Recommends to full Council to approve the capital expenditure budget of £22,550,202 including the proposed expenditure of up to £20,000,000 of the budget to acquire from Annington Property Limited the freehold acquisition of the fully refurbished existing 53 no. houses and the completed new build flats at Cavalry Crescent, Windsor.

ii) Note that the homes provide a range of rental tenures to meet housing need, from Market Rent tenure for the existing 53 no. houses and Affordable Rent tenure for the 10 new build apartments.

iii) Delegate authority to the Director of Resources in consultation with the Managing Director of the Property Company to complete negotiation of the contract for the freehold Purchase and Development Agreement with Annington Property Limited.