DD2087 Silvertown Way Budget & s106 Approval

Type of decision: 
Director's decision
Date signed: 
30 September 2017
Decision by: 
David Lunts, Executive Director Housing and Land and Interim CEO of OPDC

Executive summary

This decision form requests approval for expenditure associated with the management and monitoring of the Silvertown Way development agreement. Approval is also sought to enter into a s106 agreement with London Borough Newham and Opal (Silvertown) LLP, to enable the planning permission for the proposed development to be granted.


That the Executive Director of Housing & Land approves:

1. Expenditure of up to £80,000 to meet the ongoing costs of managing and monitoring of the Silvertown Way development, in accordance with the development agreement entered into on 26th June 2015 between Galliford Try Partnerships & Linden Limited and GLA Land & Property.

2. GLAP entering into a s106 agreement with Newham Borough Council and Opal (Silvertown) LLP.

Part 1: Non-confidential facts and advice

Introduction and background

1.1 Under Mayoral Decision 1488, Galliford Try were selected as preferred development partner for the site known as Silvertown Way and went on to sign the development agreement in June 2015.

1.2 The scheme will deliver 975 new homes of which 35% will be affordable, 30% will be managed by a specialist private rent sector (PRS) operator and the remainder will be market sale. There is a strong emphasis on non-residential uses on the site, including a new hotel, a food store and work space totalling in excess of 8,000 sqm.

1.3 Under Mayoral Decision 1660 a number of amendments were proposed and approved in order to allow progression of the scheme through planning - which was submitted to Newham Borough Council in October 2016.  The planning application received resolution to grant at the June 2017 planning committee. The s106 agreement now needs to be completed to secure planning permission.

1.4 Budget Request

1.4.1 As the project moves into delivery a budget of £80,000 will be required to fund the GLAs remaining commitments under the development agreement to completion of the project, in 2021. These costs will cover legal fees relating to the drawdown of leases and the review of the s106 agreement and other monitoring costs associated with the enforcement of a development agreement. Table 1 below shows the estimated profiling of these costs.

Table 1. Estimate of costs profile.


Forecast cost

Total Cost















1.5 s106 Agreement

1.5.1 Heads of terms for the s106 agreement to which GLAP and Opal (Silvertown) LLP (the developer’s project company) will be a party, are appended in Part 2, setting out the proposed commitments and financial payments. It is requested that GLAP enter into this agreement on the basis that an indemnity for these liabilities is provided by the development partner, Galliford Try PLC to ensure that GLAP are not exposed to such costs despite being liable on a joint and several basis in the s.106.

The level of affordable housing has agreed between Galliford Try and London Borough of Newham is 35%, reflecting the local policy position and the agreed requirement under the development agreement. 

1.5.2 The s106 terms may vary slightly as the s106 agreement is negotiated. If these variations are deemed to be material, further approval will be sought.

1.5.3 See Part 2 for the associated risks.


Objectives and expected outcomes

2.1  The development partner submitted a planning application in October 2016 for 975 new homes and in excess of 8,000 sqm of non-residential space. This achieved resolution to grant permission at June 2017 Committee.

2.2  The project is therefore performing in line with the contracted timeframes and aims to commence works in 2017 and look to conclude in 2021.

Equality comments

3.1 The scheme has been designed with inclusive design as a key principle with all units meeting Lifetime Homes standards and with 10% of units being fully wheelchair accessible.

Other considerations


Financial comments

5.1 This decision requests approval to spend £80,000 to meet the ongoing costs of managing and monitoring of the Silvertown Way development. In addition, approval is also sought for GLAP to enter into a s106 agreement with Newham Borough Council and Opal (Silvertown) LLP on the terms set out within this paper (see Part 2 for further details).

5.2 Cost profile outlined in Table 1 above (Section 1.5) shows that this project will only incur £20,000 in 2017/18 financial year and any future year balances will be earmarked in the Land and Property Programme budget within Housing & Land department and will be subject to Mayoral approvals.

Activity table



Planning application submitted

Autumn 2016

Planning Application determined

Summer 2017

Start on Site

Autumn 2017

Construction complete

Summer  2021

Appendices and supporting papers


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