Croydon Council set to reject Manchester-based company’s bid for developer Brick by Brick
By Tara O’Connor, local democracy reporter
Croydon Council is set to reject a Manchester-based company’s bid for the council-owned developer Brick by Brick.
If the deal had gone ahead, Urban Splash would have bought all of Brick by Brick’s existing assets and planned future developments.
But now the cash-strapped Croydon Council wants to keep ownership of Brick by Brick and develop 23 of the 29 sites where construction work has already begun – all bar one is set to be completed this financial year.
This includes Kindred House, 128 flats next to the Croydon flyover, and 157 flats in Lion Green Road, Coulsdon.
The remaining six sites, which have planning permission but construction is yet to start, are set to be sold on. The largest site is off Grosvenor Road in South Norwood, which has permission for 102 flats.
Croydon has loaned £200 million to Brick by Brick since the council-owned developer was set up in 2016. Auditors said it contributed to the council being forced to declare bankruptcy in November 2020.
A council report claims that not going through with the sale means it could write off loans to Brick by Brick of between £25.6 million and £52.7 million.
This compares to the sale option which would see loan write offs between £54 million and £68.4 million.
Croydon Council says it did receive a “credible offer” from Urban Splash but decided not to go ahead with the sale following advice from independent property experts.
Croydon Council leader Hamida Ali, said: “We have thoroughly explored our options to find a way forward on Brick By Brick that represents the best possible value for our taxpayers, and I want to thank all our expert external advisers for their important contributions on this.
“Now our focus is to make sure that the Brick By Brick homes under construction are completed, with all the support and guidance it needs to do that.”
The plans are set to be discussed by the council’s overview and scrutiny committee on Tuesday (July 6) before a cabinet decision on July 12.
The Local Democracy Reporting Service has contacted Urban Splash for comment.
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