This report provides an update about this project to bring forward 500 residential units in a 1 and 2 bedroom apartment scheme on the East Float of Wirral Waters. It is a joint project between Peel Holdings and Wirral Council, with the Council entering into  leases for the apartments for up to 50 years.

The development will be the first large scale purpose built private rented scheme in Wirral and will significantly enhance the housing offer within the local area by providing high quality apartments, on brown field land, on a waterfront location. The scheme will also support further residential and commercial development in Wirral Waters creating a new community within the dockland area.

The scheme originally involved Aviva Investors Commercial Assets GP Limitedas the scheme funder. Aviva have withdrawn from the scheme due to changes in their lending criteria and  a new funder  Pension Insurance Corporation plc (“PIC”) has been identified. PIC, has requested some amendments to the commercial arrangements. This report sets out the  changes to the original commercial deal including the mitigating steps and explains that the changes do not materially affect the commercial value of the deal to the Council.

That the Director of Regeneration and Place agrees to Pension Insurance Corporation PLC being the funder for the Legacy Development Scheme in substitution forAviva Investors Commercial Assets GP Limitedwith the changes to the commercial arrangements as identified in the exempt Appendices 1 and 2  to this report.

Entering into the variations to the overall commercial deal as outlined within this report will enable PIC to commit as the new funder, which will enable the taking of the leases of 500 apartments which will bring forward the first large scale Private Rented Sector development in Wirral. It will also provide an opportunity for the Council to drive the delivery of new homes, meet the housing needs of residents and contribute to economic growth in Wirral.

The recommendations, if approved, will allow the project to proceed as an investment vehicle for the Council which has the potential to deliver a financial return and therefore a long term revenue income stream to the Council which could support wider service delivery and future investment.

Do not agree to the variations- The variations have been subject to detailed negotiation and if they are not agreed there is  real risk that the development would not take place.

The Council seek to fund the Scheme directly thereby removing the need for an investor.  In order to do this the Council would need to re-open its Housing Revenue Account or deliver the scheme through Wirral Holdings Limited. The Council would need to agree a mechanism to obtain the finance such as use of prudential borrowing. However a higher rate of interest would need to be charged to the developer to comply with subsidy control provision.  Taking the above issues into account this is not considered to be a viable option to pursue.