Drummond Gate Lease Agreement

Reference code: 
PCD 150
Date signed: 
21 February 2017
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

This paper requests approval to surrender, by assignment, the lease for 1 Drummond Gate, which is no longer required for operational purposes.  The paper also recommends the payment of a premium to enable the early assignment of the lease, which will deliver significant revenue savings.


The DMPC is asked to

  1. Approve the surrender, by assignment, of the lease for 1 Drummond Gate, which is no longer required for operational purposes.
  2. Approve the payment of a premium to enable early assignment of the Drummond Gate lease.

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1    MOPAC entered into a lease for 1 Drummond on October 10th 1983 expiring on October 9th 2018. The MPS are not currently in occupation of the building, having sublet the property to the Department of Environment (DoE) for a period of 22 years. The lease with the DoE started on the 5th January 1996 and expires on the 4th January 2018.  

1.2    MOPAC will be liable for the occupation costs for the period between 5th January 2018 and the 9th October 2018. The landlord (Tyrolease) has agreed to accept an assignment of the leasehold interest, which would effectively surrender MOPAC’s interest. The assignment is in exchange for a premium payment to the landlord. The assignment needs to be completed by March 24th 2017.

2.    Issues for consideration

2.1.    Due to the confidential nature of the proposal the detail is held in Part 2

3.    Financial Comments

3.1.     The cost of the lease surrender will be funded from the Dilapidations Reserve. The surrender and assignment of the lease support the MPS’s strategy of the One Met Model and supports future savings target.

3.2.    These are discussed further in the Part 2.

4.    Legal Comments

4.1.    Section 6 of the Police Reform and Social Responsibility Act 2011 (“the Act”) provides that MOPAC must secure the maintenance of the Metropolitan Police Service, and secure that the Metropolitan Police is efficient and effective. 

4.2.    In carrying out its functions, the MOPAC may, under paragraph 7, Schedule 3 of “the Act “do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of the Office”.  This includes, entering into contracts and other agreements, in addition to acquiring and disposing of property (including land). The MOPAC has the power to dispose of surplus properties (including land) under paragraph 7 (2) (b) of Schedule 3 of the “the Act”.

5.    Equality Comments

5.1.    There are no direct equality issues arising from this proposal. 

6.    Background/supporting papers

6.1.    None. 

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