Construction work

Tender description

The agreement relates to the development of the land at 55 Morning Lane in Hackney, London, E9 6ND, UK (the Site). The Council will purchase the freehold interest in the Site from Tesco Stores Limited (Vendor) and grant to Hackney Walk Limited (Purchaser) a call option in consideration of the total maximum potential estimated value of 53 750 000 GBP to purchase a long leasehold interest. The Purchaser will have a choice to exercise the option and to redevelop the Site. The Council will not be commissioning any works. The Council is not commissioning any works. The Council will buy the freehold interest in the Site from the Vendor, grant a lease of the current store to the Vendor and grant to the Purchaser a call option to purchase a long leasehold interest in the Site. The call option may be exercised by the Purchaser for a period up to 5 years extendible by a further 3 years with a total maximum potential estimated value payable by the Purchaser to the Council of 53 750 000 GBP. The Purchaser will have the option to redevelop the Site and provide a replacement Tesco store and associated car parking. In the event the Purchaser opts to redevelop the site then the total aggregate currently estimated value of the Purchaser's works project is circa 200 000 000. However, there will be no legal obligation on the Purchaser to develop the land unless and until the option is exercised, and no obligation to purchase the leasehold interest.