Barham Park Trust Committee moves to revise charitable purposes to allow for income boosting activities

 

Barham Park Studios - ACAVA

 

The Barham Park Trust Committee (made up solely of Brent Labour Cabinet Members) will approach the Charity Commission to widen the Trust's purposes. A report to the Committee that meets on Tuesday September 10th LINK  states:

The Trust's charitable purposes, primarily to serve public recreation, restrict broader activities that can generate revenue, limiting potential income.

Earlier proposals for the park buildings that included a boutique hotel and a small supermarket aroused local opposition as did the building of four houses on the site inside the park, currently occupied by two park workers' houses.

The Trust has realised that it cannot get full vacant possesion of the park properties, let to voluntary groups, until 2031 so is opting for a new strategy. This involves introducing service charges for all current occupants of the buildings, revising rents and leases and adopting a tougher approach to those in debt to the council:

Discussions are ongoing to establish a repayment plan with tenants who have fallen into arrears. However, the Trust Committee should be aware that proactive measures, including forfeiture or legal action, may be necessary for tenants who fail to comply with payment plans or do not settle their arrears. The delegated officer (Director of Property and Assets) will actively enforce contractual obligations. The total debt is approximately £62,3551 as of Q2 2024/25 financial year.

Given that Trust income is insufficient to carry out the necessary maintenance of the site one wonders why the arrears have been allowed to mount to this level. One debtor owed £44,500 so Brent Council gave the Trust this sum as a cash advance to aid the Trusts' cash flow position. The council is paying the Trust interest on the advance...

Two lease renewals are due and Brent Council will issue Section 25 notices (See our recent story on Brent Property Strategy LINK)

Lease Renewals for Unit 1 (Tamu Samaj UK), Unit 2 (Veterans’ Club

(Wembley), and Unit 8 (Brent Council - Children Centre)

Tenants currently occupying these units on expired leases are to be offered the opportunity to renew their leases. Officers will commission independent valuations and issue Section 25 notices to ensure lease renewals occur within statutory time limits, with independent valuations guiding negotiations. These renewals will align with strategic objectives, ensuring leases terminate before the anticipated redevelopment in 2031. They will include appropriate breakclauses and exclusion from the Landlord and Tenant Act 1954 to obtain vacant possession at the proper time.

Whether the current occupants will be able to afford the new rates remains to be seen.

 The Officers' Report states:

The recommendation is that the Trust Committee defers the investment options proposed by RLB [boutique hotel etc] until vacant possession of the whole building can be acquired in 2031 (due to existing fixed-term leases with the longest one expiring in October 2031) at the latest and seeks to implement the vision in a phased approach, starting with regularising leases, carrying out urgent repairs and, subject to Charity Commission approval, expanding the permitted uses to attract a broader range of tenants to improve cash flow. This phased and incremental investment approach addresses immediate concerns and sets the stage for sustainable long-term growth and success. It is the most responsible, pragmatic and strategic path forward for the future vision of Barham Park.

Clearly there is much that the public and current occupants of the buildings would like to question but such contributions have been barely tolerated recently.  Most importantly, do the Brent public support the moves to change the charity purpose to allow for more development, probably commercial, to boost income? 

Will they be asked their views?

 

 

Brent Property Strategy moves closer to market rents and terms, impacting on affordability for voluntary organisations

 There was a time when Brent Council was not entirely sure of what property it owned - surprises kept popping up. They even found they were paying bills for properties that were leased to other organisations.

Now with the Council hit by financial problems their property strategy is seeking to maximise rental income based on market conditions. They already have problems collecting current rents so it appears likely that some organisations will not be able to pay the increased rate. In Quarter 2 2024/25 the outstanding debt across the borough totalled £824,090.  Repayment plans covering £450,453 have been established, with a maximum repayment term of two years. 

Brent Council report:

Efforts are actively being made to address the remaining balance of £373,637, including legal action, rigorous enforcement of rent repayment schedules, and the write-off of irrecoverable debts.

The tough, market-led approach is also being applied to lease renewals:

There are currently 48 outstanding lease renewals, managed through negotiated agreements and the issuance of formal Section 25 notices, which enforce statutory lease renewal timelines. So far, 14 Section 25 notices have been served, with the remaining renewals set to receive notices to ensure leases are renewed within the required timeframe. To be effective, the Council must fully leverage available legal tools, including Section 25 notices, Section146 notices, and forfeiture proceedings, to regularise leases, recover debts, and ensure compliance. Current analysis suggests that tenants who fail to comply in one area are likely to also show non-compliance in other aspects.

Rents will be based on current market conditions: (my emphasis)

 

Following a comprehensive lease review, ten out of fourteen outstanding rent review memorandums for non-expired leases have been prepared, with notices issued to initiate the rent review process. The remaining memorandums will be completed shortly. This review is expected to increase rent by approximately £60,000 per annum. Rent reviews for expired leases are strategically aligned with the lease renewal process, where final rents will be determined through independent market valuations and negotiations. This approach allows us to negotiate terms that reflect current market conditions and support long-term strategic interests, supporting sustainable outcomes.

One North Wembley voluntary organisation that was served a Section 25 notice has been in touch with Wembley Matters. They were given just 6 months to try and negotiate a new tenancy. The increase Brent Council wanted was from £1,500 per annum to £75,000 per annum. The organisation will not be able to afford that and will likely have to close. Early indications of the approach were seen in proposals for the Barham Park buildings LINK (there is a Barham Park Trust Committee meeting on Tuesday 10th September. No agenda has been published as yet.)

Given that level of increase  many other organisations would have to close and presumably the property will go to commercial interests.

Cllr Mili Patel's Cabinet Member Forward to the Agenda item states: 

The property strategy sets a course for adaptation, evidence-based decision- making, embracing change, and reimagining the potential of our property assets. Central to this strategy is a proactive approach to asset management, ensuring every decision supports our Borough Plan 2023-27 and paves the way for a more equitable future for all of Brent.

The Council’s budget and the Medium-Term Financial Plan (MTFP) for future years depend on rent income from the assets. Therefore, the assets must generate sufficient income for maintenance and upgrading, which ensures the successful delivery of Council services from the assets in the long term.

 Brent Council chart from Strategy document (Brent Council spelling)

The Council's property is varied and excludes schools etc but as can be seen in area office accommodation, presumably in Brent Civic Centre, is largest in area. The Council has been trying to let out two floors but recognise that the changed working environment (working from home) means that there is less demand for office space.

 The Property Strategy sets out its approach to the review:

Appraise every asset on its own merits for efficacy.

Segmenting the portfolio allows us to tailor strategies to maximise value and reduce risks associated with different asset types. Our approach revolves around four pivotal themes. This methodology categorises properties based on similar characteristics into distinct segments to

allocate resources efficiently. The four segments and their strategic focus are shown below.

•• Strategic Hold

•• Actively Manage

•• Invest

•• Dispose

By adopting this segmentation approach, we are not just managing properties; we are strategically stewarding assets to serve the aims of our Borough Plan. Properties will be placed into strategic themes using a thorough asset review process and scoring methodology. The stages of this process include reviewing the following:

•• Strategic relevance

•• Financial and social benefits

•• Condition and energy efficiency

•• Accessibility

•• Risks

•• Opportunities

 The full 24 page Property Strategy can be read HERE