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Dept of Health

Answer

Tim Loughton: To ask the Secretary of State for Health what terms were offered by Miller Group and the William Pears Group in bidding for Inventures; and what assessment was made of the value of proposed clauses relating to claw-back profits on future land sales. [92541] Mr. Lammy: [holding answer issued on 21 January]: Both bidders offered a fixed price for Inventures, payable on completion. In relation to the property estate both bidders offered to make a substantial initial payment followed by"overage" or claw-back payments when the sites in the property portfolio obtain planning consent, or are sold. Overage payments were ascribed an estimated present value (on the same basis for each bid) by reference to risk factors including likelihood of obtaining planning permission, estimated value of the sites with or without planning permission, time at which overage payment is likely to be triggered, percentage overage offered and other relevant factors. In addition, both bidders also offered to explore ways of introducing a new element of claw back payment by entering into joint venture arrangements with house builders, the effect of which would be to include some development profit in the sums to be clawed back. Whilst this willingness to seek ways to include further sums into claw-back arrangements was assessed as being preferable to a refusal to contemplate such schemes, the degree of uncertainty surrounding this element of the proposals was such that bid evaluation was concentrated upon the standard contractual claw-back arrangements.

Secondary information

Type

Written question

Reference

92541; 398 c474-5W;398 c472-3W

Session

2002-03

Subjects

Land NHS Profits Sales Repayments Inventures Miller Group William Pears Group

Link

View this Written question on www.publications.parliament.uk