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London Borough of Haringey Council - Selection of a Joint Venture Partner
Background and Opportunity
The London Borough of Haringey Council (the "Council") intends to select a partner with which to facilitate housing acquisition and refurbishment in Haringey in accordance with European Commission guidance on public-private partnerships.
The Council and selected partner will establish a joint venture with each party having a 50% share in the joint venture.
The joint venture shall acquire, refurbish, manage and repair 400 housing units within and outside the borough of Haringey.
Once established, the joint venture will also be required to raise £95 million of external finance through issuing a bond with a 40-year term and to facilitate a suitable long-term ownership model which is financially viable and offers a value for money proposition for the Council.
According to his Linked-In profile Fred Nugent works for the London Borough of Newham
THIS tender for a JV partner is significant.
I note the brief period in which it's open and the timing over Xmas and the New Year. Sensitive matters like this are often slipped out in a quiet period and should often merit extra attention.*
It looks like another contorted effort relating to the failing HDV, in order to make that concrete aeroplane fly. The promise to evicted decanted council tenants is that, not only will they have a Right of Return, but they will go to the top of the Waiting List (for Council homes). This would obviously make the waiting list longer, vitiating New Labour's claims that the HDV will help the housing crisis.
To me, it looks like this is intended to absorb—in phases—the evicted decanted tenants from the Northumberland Park Estate—and possibly elsewhere, such as the Love Lane Estate.
I note particularly that the housing units would be bought both inside and outside the Borough. Which means that—as many have speculated all along—that the evicted decanted tenants would be instructed invited to move possibly some distance, including outside the Borough. For an unknown period. And probably settled down, with any children possibly in new schools.
Moving home is one of the most stressful events in one's life. New Labour will be inviting Council tenants to move not once, but twice.
They are banking on most not exercising any right of return, just as happened in similar New Labour-run Southwark. Some of these tenants are infirm and elderly, as I met yesterday while on the Northumberland Park Estate.
After what could be years away, the decanted may be able to return to a wholly different neighbourhood, their friends and neighbours widely disbursed. They would much be second-class citizens amongst smart new properties with wealthy new neighbours—property owners and, as the Council intends, paying high Council Taxes on expensive properties. If the returned tenants wanted to avoid “poor doors”, it might cost them extra. Might they need to pay service charges on top?
This all-new Joint Venture would borrow £95,000,000 for this splurge on property purchases, although how Haringey would raise up to half of this is unclear. I wonder if they have anyone in mind who might be a suitable Joint Venture partner?
*the Consultation by the Charity Commission over the (attempted) sale of Alexandra Palace to a former slum landlord was held—under pressure from LBH—from early December 2007 to early January 2008. That Consultation was subject to High Court action by Save Ally Pally and the Lease was rightly quashed by the Judge.