Mayor of London Boris Johnson has used the Christmas period to sign off the Section 106 agreement that will enable one of the capital’s largest developments to proceed, the £3bn mixed-use makeover of the Royal Albert Dock in east London.
At the end of last year the mayor rubberstamped an agreement that sees the Greater London Authority’s Land & Property unit as freeholder of the site enter into a section 106 agreement with the London Borough of Newham and China’s ABP, pursuant to section 106 of the Town and Country Planning Act 1990.
The mayor also approved a side agreement, pursuant to section 156 of the Greater London Authority Act 1999, and approved an agreement that sees GLA Land & Property Ltd enter into a deed of indemnity with ABP and Dauphin Holdings Group.
GLA Land and Property entered into a development agreement with ABP London (Investments) in 2013 for the development of the 35-acre Royal Albert Dock site. As per the terms of the development agreement, ABP submitted a planning application to the London Borough of Newham and on the 23rd July 2014 received resolution to grant permission, subject to the s106 agreement being agreed.
As is standard practice for section106 agreements, GLAP as freeholder of the land is a party to this agreement. GLAP requested that the financial liabilities due under the section106 be made personal to ABP but Newham council has requested that the obligations in the agreement are enforceable against GLAP, ABP and their successors in title.
The section 156 side agreement between GLAP, ABP and TfL and Newham council secures a range of transport works.
To ensure that a bus service can be run through the site ABP (and GLAP in its absence) has agreed to grant TFL a long lease for a bus stop
There is also an obligation on GLAP to transfer the land required for a platform extension at Royal Albert Dock DLR station to TFL or DLR under this side agreement.
The GLA said entering the agreements will facilitate the delivery of around 4.5m sqft of employment led development, including up to 845 new residential units.
GLAP is being advised by Burges Salmon throughout this project including in relation to the section106, side agreement and deed of indemnity.
In October it was revealed that ABP was joining forces with CITIC Construction, the subsidiary of CITIC Group, to build out the giant project. The 4.7m sq ft will cost an expected £1.7bn to develop out.
Around 13 companies have signed for offices in the first phase of the scheme, including Savills, Globe Group, David Tang & Co Solicitors, German Pool, New Zhong Yuen Group, CDL Group and China Insurance Consultants.
Savills advises ABP at the Royal Albert Dock. CBRE advised the GLA on planning.