The Cambridge Road Estate - Draft Phase 1 Business Plan - September 2020 1 - Meetings, agendas, and minutes
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The Cambridge Road Estate
Draft Phase 1 Business Plan – September 2020
1
The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
Contents:
1. Introduction
2. Site Outputs
3. Updated Financial Model
4. Land Assembly
5. Planning Strategy
6. Sales and Marketing Strategy
7. Community and Economic Outputs
8. Estate Management Strategy
9. Programme of Works and Phasing
10. KPIs
Appendices:
1. Phase 1 Proposals
2. Financial Assumptions
3. Financial Model
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
1. Introduction
This document represents the Phase Business Plan for Phase 1 of the new Cambridge Road
Estate which is being delivered in partnership between the Royal Borough of Kingston (the
Council) and Countryside.
This Phase Business Plan follows on from the LLP Business Plan, which remains live
throughout the life of the Partnership and is updated regularly to reflect the aims of the LLP
Board.
1.1 Building the future together
By working in partnership, the Cambridge Road Estate regeneration aims to deliver new high-
quality, ‘greener’ homes, new gardens, play areas, streets, improved community facilities, new
jobs and local training opportunities, and an enhanced estate layout to provide a brighter, safer
neighbourhood. Regenerating the Cambridge Road Estate presents a significant opportunity
to both increase residents’ standard of living and the number of council rent homes available
in the borough—so we can help more people to have the secure home they deserve.
Recognising that regeneration is done well when residents are at the heart of the
process, since 2017, supported by the Council and Countryside, we have been listening to
the views and aspirations of the local community to shape the regeneration plans. A
programme of activity, including a variety of exhibitions, workshops, drop-ins, one-to-one
sessions and an informal social calendar has encouraged valuable dialogue with residents
who tell us what they want from the design, and the type of neighbourhood they wish to see.
In early 2020, eligible residents were asked in a regeneration ballot whether or not they
supported the regeneration plans and the Council’s offer. On a turnout of 86%, 73% of eligible
residents backed the plans, giving the green light to regenerate the neighbourhood with
approximately 2,170 new homes: a mix of flats, maisonettes and houses of various sizes with
the number of bedrooms matched to the need of the household. The new neighbourhood will
include a minimum of an additional 114 council rented homes.
Now, with the resident supported vision, the establishment of a Limited Liability Partnership
between the Council and Countryside means, together, we will be responsible for delivering
the business plan for estate regeneration. This will include programme monitoring, agreeing
on strategy and defining the scope, design and viability of each phase of redevelopment.
As we move forward with the next stages in the programme, our approach will see us continue
to work closely with the local community so that regeneration can generate value for residents
and the wider neighbourhood—delivering the safe, quality homes and neighbourhood they
deserve.
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
2. Site Outputs
The areas of land that make up the Phase 1 proposals are outlined on the below plan.
Phase 1 is split into 3 key buildings: Blocks B, C and E.
Further detail of the Phase 1 buildings, including accommodation mix and floor plans can be
found in Appendix 1.
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
3. Updated Financial Model
A detailed financial model for Phase 1 is provided within the business plan in Appendix 3 (not
for publication by virtue of paragraph (s) 3 of Part 1 of Schedule 12A of the Local Government
Act 1972), which tests financial viability. Updated financial forecasts will be included in papers
issued to the LLP Board ahead of each board meeting.
3.1 Financial Inputs
The financial model, cashflow and supporting information will show, as a minimum, the
following information:
1. Estimated sales values of the private and affordable residential homes on both a
£/home and £ per sqft. basis, plus estimated ground rent values.
2. Estimated rental and capital values of the commercial space, showing investment
yields and allowances for incentives and voids
3. Land assembly costs (including any allowances for CPO costs)
4. Planning costs (including CIL/S106 costs where applicable)
5. Site preparation costs (including demolition)
6. Allowances for any abnormal development costs
7. Construction costs, broken down according to use and shown on a total and £ per sq.
ft/m basis
8. External works costs, including highways, public realm and landscaping
9. Professional fees
10. Letting/sales agency and legal fees
11. The Council's management costs
12. Any other fees
13. Marketing costs
14. Contingencies
3.2 Financial Assumptions
Full details of the financial assumptions that underpin the financial model for Phase 1 can be
found in the table listed in Appendix 2 (not for publication by virtue of paragraph (s) 3 of Part
1 of Schedule 12A of the Local Government Act 1972).
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
3.3 Viability Testing
As detailed in the LLP Business Plan, there are key milestone tests for each phase which are
subject to approval before a phase proceeds:
Pre-planning viability test
Post planning viability test
Post completion viability test
Following satisfaction of the Planning Condition, Site Assembly Condition and Funding
Condition the LLP shall update the relevant Phase Business Plan and Financial Appraisal to
determine the Residual Land Value for that Phase.
In the event that the Phase Business Plan shows a negative Residual Land Value or otherwise
shows the Development to be commercially unviable then the parties shall seek to agree a
Mitigation Plan. Suggested mitigation measures are outlined in the LLP Business Plan.
3.4 Cashflows
Detailed and summary cashflows will be provided showing cost inflows and revenue outflows
throughout our partnership. The Phase 1 cashflow is provided in Appendix 3 (not for
publication by virtue of paragraph (s) 3 of Part 1 of Schedule 12A of the Local Government
Act 1972).
4. Land Assembly
The site assembly strategy will follow the principles set out in Section 9 of the LLP Business
Plan.
The phasing and CPO strategy will be regularly reviewed by the LLP Board and the Council
to consider current housing need and demand, and will be adjusted accordingly.
5. Planning Strategy
The planning strategy and approach is to submit a detailed design planning application for
around 450 homes and 1,800 sqm non-residential floorspace in Phase 1 alongside the hybrid
masterplan for circa 2,170 homes.
A Planning Performance Agreement will be put in place to secure the necessary resources,
along with setting out the broad programme of pre-application meetings required with both the
LPA and GLA to advance the technical aspects of the application.
Subject to a positive planning committee resolution and the GLA stage 2 sign off, the S106
will be completed and the planning permission issued.
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
6. Sales and Marketing Strategy
Countryside will lead the sales and marketing of all residential and commercial interests. Key
principles that have informed the strategy can be found in the LLP Business Plan.
Countryside intend to have an on-site marketing
presence, utilising the Block C retail unit as a
marketing suite for Phase 1 and subsequent
Phases of the project. The unit has a presence on
Cambridge Road, making it an ideal location to
promote both private sale homes and the wider
regeneration objectives.
The proposed location of the marketing suite can
be seen on the plan to the right.
Further Block C and Phase 1 floor plans can be
found in Appendix 1.
Countryside’s sales team have produced a pricing strategy for the Phase 1 homes, based on
market research and experience on similar projects. The price assumptions for the private
sale homes can be found in the table of financial assumptions in Appendix 2.
7. Community and Economic Outputs
7.1 Social Value
The Social Value Strategy for Phase 1 will align with the principles set out in Section 4 of the
LLP Business Plan.
A Social Value Portal with a bespoke CRE dashboard will measure a series of technical
aspects including training outputs and local supply chain, and will be used to submit quarterly
reports to Kingston.
A Community Chest will be established which will seek to support the Cambridge Road Estate
community, through providing funding to support community activities. The Community Board
will have the authority to assess, approve and recommend to the LLP Board any Community
Chest applications.
7.2 Community Uses
Phase 1 of redevelopment requires the demolition of the existing community centre at Piper
Hall and the Tadlow Housing Landlord Services Office. A new community centre will be built
in Phase 1 as part of Block C. The internal design and facilities provided by the new community
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The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
building will be designed with residents and stakeholders. During the construction of Phase 1,
temporary community facilities will be provided.
7.3 Council Office Requirements
The existing Housing Landlord Services (HLS) and CRE Regeneration Team offices will cease
to be available for occupation when vacant possession of Tadlow is transferred to the LLP.
The CRE team will work with Housing Services colleagues to develop the plan for relocation
by Spring 2021. A small estate office will be provided on Cambridge Road Estate in which
the CRE regen team will be based, including the Countryside team and housing landlord
services staff whose work is to provide support and services to the Cambridge Road Estate
e.g. caretaking, resident services officers.
Meanwhile Use
Office accommodation will be limited to staff members specifically providing front-line
services for CRE residents required and the CRE regeneration team.
Up to 12 desk spaces plus at least one meeting room and an exhibition area will be for
regular use by staff and residents.
Permanent
The new office for HLS staff will be limited to those staff providing front-line services
for CRE residents and the CRE regeneration team
It is anticipated that the office spaces will be located in the new Community Centre
which will be provided within Phase 1.
The permanent office will be provided at the handover of Block C, at which time the
Meanwhile office accommodation will no longer be needed.
8. Estate Management Strategy
The Estate Management Strategy for CRE provides for the Council’s ongoing management of
areas yet to be handed over to the regeneration project and will need to be in place prior to
the submission of the Phase 1 detailed design planning application. The strategy should not
be produced in isolation and it should be expected that significant parts of the CRE estate
maintenance will be carried out by the Council’s team.
The future Estate Management Strategy for CRE will be developed with the Community Board
and implemented in phases as the development completes. The areas to be covered by the
Estate Management Strategy are set out below:
Introduction and background to the regeneration to include the roles within the
CRE Joint Venture
Governance and Resident Involvement
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Draft Phase 1 Business Plan
September 2020
Management of the estate during construction works
Local Regeneration and Estate Office
High Quality Design, Management and Maintenance
Planned Maintenance
Public Realm
Facilities and Estate Management
Housing Management
9. Programme of Works and Phasing
The target dates for Phase 1 are as follows:
Event Date
Submit Planning (reserved matters) Q4/20
Planning Consent Q2/21
Start on Site Q2/21
First Home Completion Q3/23
Last Home Completion Q3/25
The programme will be regularly reviewed and updated as the project evolves.
The above programme dates are reflected within the current Phase 1 financial model (see
Appendix 3 (not for publication by virtue of paragraph (s) 3 of Part 1 of Schedule 12A of the
Local Government Act 1972)).
9.1 Sub-Phasing
The Phase 1 land is currently occupied by existing residential and community infrastructure
buildings. As such the programme for commencement of construction of the new Phase 1
homes is subject to vacant possession on each of the land parcels being delivered to the LLP.
It is anticipated that Phase 1 will be split into three sub phases to respond to the progress of
land acquisition. This is reflected in the delivery programme assumed within the financial
model and the Development Programme above.
The delivery of Phase 1 will be regularly reviewed by the LLP Board in line with progress on
land acquisition and the sub phasing strategy will be updated accordingly.
9The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
10. KPIs
To measure and ensure the successful outputs of the project, various KPIs will be used as a
monitoring tool. An annual report will be presented to the Project Board.
KPI Description & Measure Review
Accurate distribution and retention of records,
1 Administration materials, minutes, notices and documents in relation Annually
to the Project.
Commitment of Key Personnel to the Project, including
Personnel &
2 regular attendance and participation in the Project Annually
Project Board
Board.
Providing the timely delivery of financial and
Financial operational information as required by the Framework
3 Annually
Reporting Agreement or as reasonably requested by the Council
or the Project Board.
Meeting the timing requirements to prepare and update
Business the Business Plan, in line with the Framework
4 Annually
Planning Agreement. Meet deadlines for the delivery of reports
and update papers.
Achieving planning consents in line with the Business
5 Planning Consent Annually
Plan
Commencing on site delivery of the sites in line with
6 Start on Site Annually
the Business Plan
The delivery of new homes in line with the Business
7 New Homes Annually
Plan
Affordable The delivery of affordable homes in line with the
8 Annually
Homes Business Plan
Commercial Floor The delivery of commercial floorspace in line with the
9 Annually
Space Business Plan
Community Floor The delivery of community floorspace in line with the
10 Annually
Space Business Plan
Delivery of new buildings to agreed sustainability
11 Sustainability Annually
targets
Number of reportable incidents and ratio to working
12 Health and Safety hours (a) on the Project to date and (b) within each Annually
Financial Year.
Number of apprentices supported by the Project,
13 Apprenticeships Annually
against Business Plan targets.
Percentage of workforce employed from local labour
14 Local Labour Annually
catchment
15 Social Value To be agreed by the LLP Board Annually
Equality Impact Assessments undertaken for all
16 Equalities Annually
relevant stages and activities of the programme
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Draft Phase 1 Business Plan
September 2020
Appendix 1: Phase 1 Proposals
11The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
Summary of accommodation:
1 bed 2 bed 3 bed 4 bed+ Total
Social Rent 54 44 40 12 150
Shared Equity 10 5 14 29
Private 97 137 36 270
Total 161 186 90 12 449
% 36% 41% 20% 3% 100%
The above metrics are subject to change to respond to design consultation, housing needs
and market demand.
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Draft Phase 1 Business Plan
September 2020
Phase 1 plans:
The following drawings are indicative and subject to change as the Phase 1 design evolves
in response to consultation, housing needs and demand.
Indicative Phase 1 Blocks:
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Draft Phase 1 Business Plan
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Block B Indicative Ground and First Floor Plan:
Block E Indicative Ground Floor Plan:
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Draft Phase 1 Business Plan
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Block E Indicative First Floor Plan:
Block E Indicative Second Floor Plan:
Block C
Indicativ
e
Ground
Floor
Plan:
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Draft Phase 1 Business Plan
September 2020
Block C Indicative First and Second Floor Plan:
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Draft Phase 1 Business Plan
September 2020
Appendix 2: Financial Assumptions
(Not for publication by virtue of paragraph (s) 3 of Part 1 of Schedule 12A of the Local
Government Act 1972)
17The Cambridge Road Estate
Draft Phase 1 Business Plan
September 2020
Appendix 3: Financial Model
(Not for publication by virtue of paragraph (s) 3 of Part 1 of Schedule 12A of the Local
Government Act 1972)
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