Amendments Proposed for Master Development Agreement in Silvertown
Proposed changes to the Master Development Agreement (MDA) for the Silvertown project aim to adjust minimum requirements for non-residential space and affordable housing. The alterations come in response to shifting planning policies and market dynamics stemming from the COVID-19 pandemic.
Changes to Commercial Space Requirements
Following the pandemic, a notable decline in demand for large commercial office spaces has prompted a substantial revision of the existing MDA criteria. The requirement for non-residential floorspace is set to decrease dramatically, from 167,225 square metres to just 34,500 square metres. This significant reduction reflects a broader trend in the property market and aligns with local planning policies that favour non-residential developments in town centres rather than scattered locations.
Impact of COVID-19 on Planning Policies
The COVID-19 pandemic has led many businesses to reassess their office space needs, resulting in fewer demands for extensive commercial properties. Local planners have also voiced concerns about the allocation of significant workspace outside designated town centres, prompting revisions to the masterplan.
Affordable Housing and Financial Adjustments
Originally set at 50% affordable housing, the minimum requirement may now be reduced due to economic challenges facing the development. Recent community consultations show a move towards a viability-tested approach to assess and adjust the affordable housing percentage as the project progresses. The anticipated outcome is 30% affordable housing, with a significant portion aimed at social rental homes.
Financial Framework Modifications
Changes to the financial structures outlined in the MDA will reflect the new planning permissions. A fixed minimum land payment will be established, and further financial provisions will be adjusted to capture the evolving landscape of the project’s valuation. If not amended, current financial triggers could render the proposed downsized commercial space unviable.
Delivery Models and Alternate Developers
The MDA revisions will enable the use of alternate developers (ADs), which will enhance flexibility in the development process. While TSP retains overarching responsibility for the project, these developers can now play a more significant role in executing parts of the masterplan. This change aims to accelerate project delivery while ensuring TSP maintains overall control and liability.
Joint Venture Arrangements
A new joint venture involving the Greater London Authority (GLA) will require updates to the definition of ‘controlling entities’ in the MDA. As the second MDA is developed, specific arrangements regarding this partnership will be clearly outlined, allowing for smoother management and oversight of the project moving forward.
Project Objectives Remain Unchanged
Despite the proposed amendments, the core objectives of the redevelopment remain intact: to rejuvenate a large brownfield site and create a vibrant mixed-use community in the Royal Docks. These changes underscore the adaptability required in modern urban development amid unforeseen challenges.
Source: official statements, news agencies, and public reports.
https://www.london.gov.uk/md3423-silvertown-quays-master-development-agreement-variation
