Press release: The Crown Estate announces Peabody as prospective purchaser of its four London housing estates

The Crown Estate announced today (12 October 2010) that it has chosen London housing specialists Peabody (a housing association and charity) as the prospective purchaser of the Cumberland Market, Millbank, Victoria Park and Lee Green housing estates.

Today The Crown Estate begins a six-week consultation to hear views on Peabody’s plans for managing the estates and how current residents’ rights are to be protected, should The Crown Estate decide to proceed to a sale of the estates.

Peabody’s proposals for the estates fulfil all the conditions imposed by The Crown Estate to directly respond to the principal concerns voiced by residents and others during a consultation earlier in the year. Specifically, Peabody:

• would be legally bound to continue lettings to key workers at the same level as The Crown Estate (approximately 9 out of every 10 new lettings), ensuring the estates play a key role in the future provision of affordable housing in London
• accepted they will be legally bound to maintain existing tenants’ current rental frameworks and security of tenure provisions.

The Crown Estate Board was impressed by Peabody’s detailed plans for the future management of the estates, its proud heritage in London housing and well-earned reputation for investing in and developing local communities.

Residents of the four estates would benefit from a sale by increased involvement in estate management and being eligible to participate in a range of community initiatives, such as volunteering and training opportunities, and a wide range of well-being and health activities.

Sir Stuart Hampson, Chairman, The Crown Estate said: “Everyone who cares about the future of affordable housing in the capital should warmly welcome this news. Peabody homes have been at the heart of London for almost 150 years and their name is synonymous with responsible management, and safe, vibrant communities. We hope that residents and others take the time to understand Peabody’s plans for the estates and let us know their views on the proposals.”

Steve Howlett, Chief Executive of Peabody said: “I am delighted that Peabody has been selected and look forward to sharing with Crown Estate residents our vision for the future of these fantastic communities during the consultation. We are absolutely committed to keeping these properties affordable; the current Crown Estate arrangements to house key workers will not change.  That’s good news for residents and good news for London.”

A final decision on whether to proceed with a sale to Peabody will only be made after the Board has considered the results of the second consultation, which closes on 23 November 2010.

Press Contact
Andrew Payne
Communications Manager
The Crown Estate
020 7851 5271 / andrew.payne@thecrownestate.co.uk

Notes to editors
The appointment of Peabody as the prospective new owner addresses other concerns expressed by residents and stakeholders:

• Tenants’ involvement in the management of the estates – Peabody places great emphasis on resident involvement. It offers all its residents the opportunity to be actively involved in the running of their communities including right up to Board level.
• High level of day-to-day management – residents would continue to benefit from the same high level of management. The service team currently managing the properties would continue in place after a sale.
• Transfer policy - Peabody proposes to operate an internal transfer scheme similar to The Crown Estate’s which existing residents would be able to apply for.

It is important to note that, should these properties be sold to a new owner, existing tenancies will remain in place. The sale would be of the freehold – the ‘bricks and mortar’. Peabody would manage the properties subject to existing tenancies. This includes the rental framework and policy that is currently in place.

About The Crown Estate

• The Crown Estate manages a highly diverse £6 billion property portfolio across the UK.
• It pays all surplus revenue (profit) to the Treasury for the benefit of the nation every year: in 2009/10 this was £210.7 million. Over the past ten years The Crown Estate has paid a total of £1.9 billion to the Treasury.
• Its objectives, which are laid down by Parliament under the Crown Estate Act 1961, include enhancing the value of the estate and the revenue it produces.
• The responsibilities of The Crown Estate are to maintain and enhance the value of the estate and its income over the long term and to do this having regard to good management. In summary, The Crown Estate is a successful business organisation guided by its core values – commercialism, integrity and stewardship.
• The Crown Estate’s property comprises four estates: urban, marine, rural and Windsor. www.thecrownestate.co.uk
  

About Peabody
Peabody is one of London’s oldest and largest charitable housing associations, providing homes for nearly 50,000 people across the capital. We make London a city of opportunity for all by ensuring as many people as possible have a good home, a real sense of purpose and strong feeling of belonging.