2.17 The proposed new buildings at 2 Marsham Street may reduce the natural light to a small number of local properties. Despite uncertainties over the legal position, the Home Office decided to offer compensation on rights of light for public policy reasons. The Home Office concluded that placing this risk wholly with AGP could have meant that the project was unfundable, or at best would be much more expensive, and therefore it retained management of the risk. The Home Office has shared parts of the risk with AGP by price capping some of the costs of design changes and the delay consequences should there ever be any sustainable legal objections to the approved scheme.
9 |
| Comparison of the prices offered by bidders for disposal of the freehold property with the Home Office's own estimates in 2000 as advised by Knight Frank | ||||
|
| Property | AGP (£m) | CASL1 (£m) | Home Office estimates at BAFO evaluation (£m) | Home Office estimates at financial close (£m) |
|
| Cleland House | 9.75 | 9.40 | 16.4 | 23.3 |
|
| Abell House | 11.975 | 10.9 | 18.75 | 27.3 |
|
| Horseferry House | 12.025 | 12.00 | 16.3 | 17.7 |
|
| Total Existing Freeholds | 33.75 | 32.3 | 51.45 | 68.3 |
|
| NOTE | ||||
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| 1. These figures do not include 'overage' - a mechanism by which any excess profits from disposal of the property would be shared with the Home Office. | ||||
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| Source: Home Office/Knight Frank | ||||