RDA assets disposal
Regional Development Agencies (RDAs) owned a variety of assets, often with associated liabilities. Around a third of this assets and liabilities portfolio was made up of land and property including the RDA office estates and the rest was made up of loans, grants and other projects. The diagram below gives some examples of the type of assets and liabilities RDAs owned, which we have been gradually disposing of either on the open market or by transferring them to another body, to complete the work.
Sale of some RDA land and property assets
RDAs routinely bought, developed and then sold land and property assets as part of their regional development work. RDAs stopped purchasing new assets in the spring of 2010.
Around 20% of the land and property portfolio completed its development during 2010, and in April 2011 Government authorised RDAs to sell these assets on the open market before they close. Local authorities, private sector companies and others will be able to express interest in buying these assets.
RDAs will only agree the sale of assets at a fair price which reflects its market value. They will not “fire sale” assets at any price. If they are unable to agree sales for some assets before they close, these will be transferred to HCA (see below).
Transfer of assets to HCA
BIS and the Department for Communities and Local Government (DCLG) agreed in July to transfer the majority of the RDA land and property portfolio, into a stewardship arrangement with the Homes and Communities Agency (HCA) through which local partners, including local authorities, businesses, local enterprise partnerships (LEPs) and others will be able to influence their development and ensure they are developed in a way which maximises economic outcomes for the area. Most of these sites are not ready for market sale and in the majority of cases require further investment to deliver economic benefits. To achieve delivery of this, the Homes and Communities Agency (HCA) will be responsible and accountable for managing the portfolio. Subject to completion of the necessary detailed work and arrangements the transfer is currently planned to take place on 19 September 2011.
This portfolio will include the land and property assets for sale if they do not complete sales by September 2011, additional land and property assets, contracts and projects. The portfolio is valued at over £600m, based on market value as at March 2011. We have developed a map of the land and property assets by region, and published a full list of land and property assets (XLS, 218 Kb) that RDAs will be selling or transferring to HCA.
52 former coalfields in several regions were transferred back to the Homes and Communities Agency (HCA) on 1 August.
South West packages
SWRDA presented a proposal to bundle together some of its land assets and liabilities to be offered to Local Authorities to acquire at market value. We have reviewed and agreed three packages; they include a combination of assets and liabilities located in Gloucester and Plymouth.
London
The situation is different in London because of the unique arrangements in place there compared with other areas. The London Development Agency (LDA) is a local authority body and part of the Greater London Authority (GLA) family. As such the assets and operations of the LDA already fall under the overall responsibilities of the Mayor.
It is intended that all London Development Agency (LDA) assets (and liabilities) will be transferred to the Greater London Authority (GLA) before the closure of the LDA. This will give the GLA an important portfolio of regeneration assets to support its new responsibilities for housing and regeneration in London being implemented in the Localism Bill.
Background
Following the closure announcement each RDA was asked to produce a detailed assets and liabilities plan. These plans were submitted on 31 January 2011 and have been scrutinised by Government.
Mark Prisk issued a statement on 10 February which set out the process and timetable for the disposal of RDA Assets and Liabilities. We will continue to work with the RDAs and other local partners to achieve the best possible outcomes for economic growth during the transition period.
