Press Release

THE CROWN ESTATE LAUNCHES RESIDENT CONSULTATION AT FOUR LONDON RESIDENTIAL ESTATES

26 January 2010

The Crown Estate is today beginning consultation with residents at four of its residential estates in London.

This will explore resident views on a proposal, which if adopted, would see the freeholds of Crown Estate properties at Cumberland Market, Lee Green, Millbank and Victoria Park sold to a new owner who would also manage the properties. It is important to note that the sale of the freeholds would be subject to existing tenancies which will remain in place.

The consultation will run for eight weeks until 23 March 2010, during which time The Crown Estate will also be marketing the properties to focused housing providers to assess interest from potential buyers.

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’. Any new owner would manage the properties subject to existing tenancies. This includes the rental framework and policy that is currently in place.
• Depending on who the sale is to, some specific tenancy arrangements may be subject to change. This is explained in the consultation material we have sent to residents.
• Approximately 35 per cent of our residents are on ‘regulated tenancies’ which means their rents are ultimately determined by the Rent Officer. This would not change. The remainder would be subject to ongoing arrangements.

Paul Clark, Director of Investment and Asset Management, at The Crown Estate commented: “From time to time we review our properties and we have recently completed a review of some of our residential housing. As a result of this, we are considering a proposal to sell these properties to a new owner.”

The Crown Estate has a duty to maintain and enhance the value of the estate and the income it generates for UK taxpayers. A recent review of some of our housing estates suggests that we should consider whether this could be better achieved through the sale of the properties to a focused provider of this type of housing with a greater scale of housing management expertise.

However, it must be noted that this is a proposal only at this stage and no final decisions will be made until after the consultation. The Crown Estate is providing various ways for residents to engage with the consultation. We are setting up drop-in centres at or near each estate, will be meeting resident associations, and have established a dedicated telephone line and email address. We enjoy a good relationship with our tenants and hope that they take part in this consultation.”

The Crown Estate’s activity covers many diverse areas, including managing rural estates, parks, commercial areas like Regent Street in London and the UK seabed.