£3 500 000

It has come to our attention (via a FOI request) that the total capital receipt Haringey expect to receive for the disposal of Hornsey Town Hall, the Square and Green, and the car park with its residential development potential is…..£3 500 000.

One of the big reasons given for going through the whole OJEU tender process was that Haringey were obliged to do so, given the size of the contract on offer – almost £100 000 000.

Three-and-half million pound seems like a pittance.

4 Replies to “£3 500 000”

  1. I read this to an architect friend, who spontaneously cried, “Is that all?!” when I read £3.5m. He was even more shocked when I read it was a £100m contract.

    Something apart from the figures is not adding up on this project.

  2. At the risk of seeming inappropriate in the wake of Grenfell, we could say that Haringey’s Council selling off of our town hall is a “fire sale”

    Meaning quote:
    countable noun [oft NOUN noun]
    If you describe a sale of goods or other assets as a fire sale, you mean that everything is being sold very cheaply.

  3. The details of the contract/development agreement is a bit of a moot point: it is unlikely that Haringey will ever let us know while it is live and still matters.

    The retail value of the project can be guesstimated.

    144 flats at, say £750k, gets you £108m.

    I have no idea what a 67 bedroom hotel would be worth if it was up for sale (can anyone help?) but let’s go for £20m.

    The value of an arts centre in a Grade II* listed building, newly restored and refurbished? Again difficult to say because the value would be a reflection of the financial viability and, as I write, we have no idea of the vision, the operator or the business plan. Lets go for £2m, for no reason other than it rounds the whole lot to £130m.

    This seems a fair guess at how the assets would appear on a developer’s balance sheet.

    So, what does Haringey get: a big tick in the job done box!

    Their intention was always to get HTH off the books and they went for a commercial disposal leaving the successful winner to benefit from the development potential in the car park but with several not so profitable tasks … to find a sustainable use for HTH itself and to restore the building to get it off HE’s At Risk Register.

    The latter is usually quoted as c£15m and, with the £3.5m cheque they will trouser, LBH’s balance sheet will be looking rosier to the tune of£18.5m .

    Value for money?

    If there any developers of project accountants out there who would like to comment .. the floor is yours.

Leave a Reply

Your email address will not be published. Required fields are marked *