Despite Trustees very best endeavours, the sale of the site hoped for at the end of January, did not reach completion.
Detailed planning consent had been obtained in the middle of 2008, ahead of placing the site on the market. This represented a high quality and sympathetic development of just 95 units on the 55-acre site plus 8 apartments in the Priory and suited the Trust's plans very well.
In spite of the dire economic climate, the MOD and their development partner, VSM Estates, had secured an acceptable offer from a large residential developer. A well-respected, smaller specialist development company was planned to be sub-contracted to restore the Priory and create the museum. Collectively, the Trust had conducted a vast amount of legal work with the partners and with the London Borough of Harrow.
The LB Harrow had proposed a very detailed set of planning instructions, which would help the Trust deliver the museum (including a 60 year lease at no cost) and were also acceptable to the developers. The Trust had negotiated a sinking fund for future service charges at a cost of only £100,000 to the Trust, which removed all future liability. Overall, the deal was worth in excess of £10 million to the Trust.
On that basis, we were due to complete on 29 January and, following full scrutiny by Trustees, were ready to sign the related agreements. However, at the eleventh hour, the developer failed to agree terms with VSM Estates and the MOD. Consequently, the site was withdrawn from sale with a view to re-marketing it when economic conditions improve, the current estimate is mid-2010.
This is clearly very disappointing to the Trust and our supporters. We had spent an enormous amount of time in seeking to bring the sale to a conclusion, not to mention significant expenditure on legal fees.
But all is far from lost, as we have now established the detailed commercial arrangements that will need to define any future sale agreement and we also have a set of detailed documentation (a least a foot thick) which lays out these arrangements in a way that we know would be acceptable to a developer. Nevertheless, if things had been different, we would now have started the refurbishment of the Priory.
In the period before the site is re-marketed, we continue to have use of the Priory for fund-raising events and to maintain the profile of the project. Indeed, this month we held a very successful print-signing event supported by 20 of our veterans. We need to continue fund-raising activity so that we are prepared for a major £2.5 million appeal once the future sale deal is signed. We are also working with the Heritage Lottery Fund (who describe the Priory as 'blue-chip heritage') and our designers to maximise the museum's public appeal.
Trustees did all that they could to bring this sale across the line we just couldn't beat the market conditions. Please rest assured that Trustees remain fully committed to delivering a sustainable museum at Bentley Priory and are confident that the deal crafted is the best way forward. We just need to wait for the market to improve for the sale to go ahead. In the mean time the Trust plans to open Bentley Priory to the public for a number of events this year, please see our events page for more details.