§ Mr. Mikardoasked the Secretary of State for the Environment why eight acres of Heron wharf have been sold to Tarmac Ltd. for the equivalent of £120,000 per acre; what are the arrangements between this company and the London Docklands Development Corporation regarding sharing the equity; what other companies were invited to bid for the land; and what other offers were received.
§ Sir George YoungA number of inquiries were received about this site, resulting in two worked up 101W proposals. The corporation took the view that the scheme proposed by Brookglade Properties Limited (which subsequently merged to become Tarmac Brookglade Properties Limited), was commercially the most robust and offered the only opportunity of early development.
The basic premium paid was £150,000 per acre for this 8.1 acre site. In addition, LDDC retained a share in the equity of the development under the terms of which it will receive "overage" (payable where rental values exceed a notional base value) which the corporation estimates will substantially increase the total receipts for the site. In accordance with the formal DOE requirements, LDDC obtained a certificate from professional valuers stating that in their opinion the terms proposed represented fair open market value at that time.