Slough Council could sell off three major housing sites

In order to reduce its £760m borrowing debt and £479m blackhole, the local authority needs to sell up to £600m-worth of its properties and land.

While the out-of-borough assets, such as the Odeon Cinema in Basingstoke, are set to be sold off and the council’s headquarters Observatory House is under consideration, three major sites that are earmarked for hundreds of homes could be auctioned off.

This includes the former Thames Valley University site, also known as the North West Quadrant, that’s earmarked for 1,300 homes and 45,000sqm commercial space, the 212 homes site on Montem Lane, and the 312 homes site at the end of the Grand Union Canal – known as Stoke Wharf.

READ MORE: Heatherwood Hospital signed-off to be turned into 230-homes

The schemes are a part of the joint venture between the council and regeneration company Muse, which aimed to transform Slough by creating new homes, ‘iconic buildings,’ open spaces, and leisure facilities.

The council entered this partnership in 2013 but is now reconsidering its commitment as it needs to save money and downsize its capital projects in order to reduce costs and risks.

The report that is due to be presented to senior councillors at next week’s cabinet meeting, states the council will need to spend more than £27m over the next five years across the three sites.

In order for the projects to continue, senior councillors are recommended to back off from the schemes and give their shares to another purchaser for the projects to go ahead as planned.

READ MORE: Slough Council's call centre to be improved after long wait times

Advanced negotiations with a purchaser to buy the former Thames Valley University site, which was bought in 2016 for £24.2m, are already underway and cabinet is required to approve the sale before the end of this September.

It is proposed to put the Montem Lane scheme, which was granted planning permission in January 2021, on the market this summer for housebuilders to buy the site.

The Stoke Wharf project is a little bit more complicated as it involves the council, Muse, and the Canal and Rivers Trust (CRT) in a joint venture known as Stoke Wharf Developments LLP. The council and CRT are 25 per cent members each of the venture whereas Muse is a 50 per cent member.

CGI of the Stoke Wharf development

Due to cost inflation and sales value, Muse has indicated this project is unviable and does not want to develop the 312-homes by itself despite being granted planning permission in February 2021.

Muse has said it wants to sell the consented scheme ‘at the earliest opportunity’. Officers say by following Muse’s recommendation, the council could bag more funds but won’t be able to sell the site until next year due to contract restrictions, which will be revised this year.

The final disposal of this land won’t be made until cabinet approve another paper once the sale price and terms have been ironed out.

The report that is due to be heard at a cabinet meeting on Monday, 17 July, also states two further joint venture sites are being considered this autumn. This could include the 24-family home plan in Wexham South and the 35-family home scheme in Haymill.