Hermitage Lane Development

Description

TBG Open Door Limited ("Open Door") is a Registered Provider of social housing. Open Door is entering into a lease and development agreement with Hill Residential Limited ("HRL") relating to the development of a site at Hermitage Lane, London NW2. The development will comprise of the construction of 52 homes on the site, 31 of which will be for private sale on the open market and 21 of which will be affordable housing units. The contractual arrangements between the parties will be structured as follows: 1. Open Door is the freehold owner of the site. 2. Open Door will enter into an agreement with HRL to grant HRL a lease of the site in consideration for an agreed sum. 3. The lease will place HRL under an obligation to deliver the entire 52 unit scheme (both the private sale and affordable units) on the site in accordance with the planning permission for the site and the requirements of the associated Section 106 agreement, but it will not place HRL under an obligation to carry out the construction works to a specification prescribed by Open Door which is set out in the lease. 4. Alongside the lease, there will be a separate development agreement between Open Door and HRL for the delivery of the 21 affordable units only. This development agreement will place HRL under a positive obligation to carry out the affordable housing works to a specification prescribed by Open Door which is contained in the agreement. 5. The affordable housing units will be retained by Open Door following completion. 6. HRL will be entitled to sell leasehold interests in the 31 private units on the open market and will be entitled to retain the proceeds of sale.