§ Mr. CorbynTo ask the Minister for the Cabinet Office (1) what is the total expenditure on the refurbishment of Archway Tower, Junction Road, N19 over the past three years; what rental income has been received over that period; and what rental income is expected for the duration of the current lease; [86897]
(2) what expenditure has been made on rent for Archway Tower, N19, in each year since 1995; and what rent he expects to pay for the remaining period of the lease. [86898]
§ Mr. KilfoyleResponsibility for these matters has been delegated under the terms of the Framework Document to the Property Advisers to the Civil Estate. I have asked its Chief Executive, Mr. John Locke, to write to my hon. Friend.
Letter from John C. Locke to Mr. Jeremy Corbyn, dated 16 June 1999:
- The Parliamentary Secretary for the Cabinet Office, Peter Kilfoyle, has asked me to reply to your questions about expenditure and rental income on Archway Tower.
- Further to my letter of 4 March 1999 I can advise that capital expenditure from 1 April 1998 to date now totals £4.3 million. Refurbishment work to ten floors was completed in April 1999 and PACE have recently let the contract for the final phase of work, following competitive tendering.
- In my previous letter, I outlined the impracticality of re-using the building until after completion of the first phase of refurbishment. There was therefore no income during this period. However, there are now ten floors available for sub letting and our agents DTZ Debenham Thorpe are currently marketing them on our behalf. These floors total 4,210 sq m (45,230 sq ft) for which PACE are seeking a rent of £134.56 per sq m (£12.50 per sq ft). The floors are being offered to Government Departments as well as the private sector with the aid of brochures, advertisements, mail-shots and distribution of CD Roms. Once the final phase of five floors (1,684 sq m 18,092 sq ft) is complete and the building fully let, the total rental income should amount to £791,525 pa. This level of income should be achievable for the duration of the Secretary of State's Lease, which is subject to rent review.
- Rental expenditure for each year since 1995 has been £884,000 pa for the building, with an additional £29,400 pa for 49 car parking spaces. The Secretary of State's Lease is subject to two further rent reviews at 25 December 1999 and 25 December 2004. At the next review, the landlord may seek an uplift in rent and Property Consultants, DTZ Debenham Thorpe are currently advising PACE on rental value for the review. The expectation is that the current rent paid of £884,000 pa should not increase, but it is not possible to forecast whether there is likely to be an increase from the rent review in December 2004.