The Regeneration of Tottenham Thread

[Wine Gum]

Some further details of the new proposals in pre-planning application dialogue with Haringey within the High Road West area.

The proposals include a new cinema complex.

Source: https://www.minutes.haringey.gov.uk...ay-2021 19.00 Planning Sub Committee.pdf?T=10

 

[Wine Gum]

 

[Wine Gum]

New Planning Application is in for the Goods Yard & The Depot High Road West sites made by Goodsyard Tottenham Ltd, the ENIC company that owns the site.

Link:

Online Planning Services: Application search results

 

[Zaphod]

Excuse my ignorance but does the football club actually gain any benefit from these developments? Presumably, once completed they’ll just be sold off and won’t belong to the club anymore?

 

[Wine Gum]

Excuse my ignorance but does the football club actually gain any benefit from these developments? Presumably, once completed they’ll just be sold off and won’t belong to the club anymore?

The simple answer is No but some context as I see it.

The Club spent around 90M assembling land for the stadium development. That land included not just the stadium footprint but also Sainsbury’s / Lillywhite House, the stadium southern development not started and a number of properties in the High Road West area.

We know that the transfer budget was constrained during the property purchases as this land acquisition was mostly completed without increasing debt significantly by using club finances.

Prior to raising the finance for the stadium build the club partly cleared down the limited debt it did hold by selling a number of properties to an ENIC owned Company domiciled in the Bahamas. The price paid was “fair value”. For the properties in the High Road West area this was valued without planning gain.

Following the property sales planning consent has been obtained for the High Road West area properties meaning their value will have considerably increased. ENIC have also sold on part of the ownership to a development partner. None of this increase in value or profit from the developments will go to the club.

Rather than transferring the properties for fair value at the time ENIC could have injected equity into the club to clear down debt instead but chose not to. If they had then the club would now benefit from the increased values post planning consent and any sales to development partners.

 

[Yid121]

The simple answer is No but some context as I see it.

The Club spent around 90M assembling land for the stadium development. That land included not just the stadium footprint but also Sainsbury’s / Lillywhite House, the stadium southern development not started and a number of properties in the High Road West area.

We know that the transfer budget was constrained during the property purchases as this land acquisition was mostly completed without increasing debt significantly by using club finances.

Prior to raising the finance for the stadium build the club partly cleared down the limited debt it did hold by selling a number of properties to an ENIC owned Company domiciled in the Bahamas. The price paid was “fair value”. For the properties in the High Road West area this was valued without planning gain.

Following the property sales planning consent has been obtained for the High Road West area properties meaning their value will have considerably increased. ENIC have also sold on part of the ownership to a development partner. None of this increase in value or profit from the developments will go to the club.

Rather than transferring the properties for fair value at the time ENIC could have injected equity into the club to clear down debt instead but chose not to. If they had then the club would now benefit from the increased values post planning consent and any sales to development partners.

So the club bought land that got sold on top eric that then went up in price that ENIC has benefited from? Nice little cashcow for levy and Co as pre and post planning etc will make them good money even if "fair value" is as good as market value but all about timings

 

[davidmatzdorf]

So the club bought land that got sold on top eric that then went up in price that ENIC has benefited from? Nice little cashcow for levy and Co as pre and post planning etc will make them good money even if "fair value" is as good as market value but all about timings

It's not a "cash cow for ENIC", that's entirely false and misleading. ENIC does not take cash out of THFC. Ever. That is not their business model. They acquire businesses that are undervalued, invest to add value and then sell them when they have multiplied in value.

They do not take cash income out of their investments. Is that clear?

ENIC are the opposite of an asset-stripper. They build assets long-term, to benefit from the capital gains when they eventually sell them. Even before they sell them, the increased asset value on their balance sheet makes it easier for them to finance other acquisitions and other developments.

The acquisition of land in Tottenham for mainly-residential development has several purposes. One is to increase the volume of good quality property in the vicinity of the stadium, to raise general property values locally by improving the local housing stock. Another is to keep Haringey Council onside by continuing to show their commitment to local regeneration, to make up for the elimination of affordable housing in the original stadium development after the financial crash.

But the most important is to generate capital receipts - profits - from the sale of housing that can be used to reduce the long-term debt from the stadium development itself. It's exactly what Arsenal did, but we're doing to it to a much wider and more extensive level. Reducing debt for THFC is entirely different to generating cash for ENIC.

Reducing the long-term stadium debt reduces the annual repayments on that debt. That, in turn, affects the money available to run the footballing side of the business; thus it affects player salaries, transfer fees and ticket prices. In that way, the land acquired for development indirectly feeds into the quality of the football.

 

[CantSmileWithoutYou]

It's not a "cash cow for ENIC", that's entirely false and misleading. ENIC does not take cash out of THFC. Ever. That is not their business model. They acquire businesses that are undervalued, invest to add value and then sell them when they have multiplied in value.

They do not take cash income out of their investments. Is that clear?

ENIC are the opposite of an asset-stripper. They build assets long-term, to benefit from the capital gains when they eventually sell them. Even before they sell them, the increased asset value on their balance sheet makes it easier for them to finance other acquisitions and other developments.

The acquisition of land in Tottenham for mainly-residential development has several purposes. One is to increase the volume of good quality property in the vicinity of the stadium, to raise general property values locally by improving the local housing stock. Another is to keep Haringey Council onside by continuing to show their commitment to local regeneration, to make up for the elimination of affordable housing in the original stadium development after the financial crash.

But the most important is to generate capital receipts - profits - from the sale of housing that can be used to reduce the long-term debt from the stadium development itself. It's exactly what Arsenal did, but we're doing to it to a much wider and more extensive level. Reducing debt for THFC is entirely different to generating cash for ENIC.

Well said.

 

[worcestersauce]

Presumably the sale to the enic company meant the club didn't have to be involved in the entire planning and development process?
I also assume that the South development area is still owned by the club and will remain so.
Would I be right?

 

[Wine Gum]

I wouldn't describe ENIC as an asset stripper as some of the developments have (Sainsbury's / Lillywhite House) and will in future (Stadium Southern Development) benefit the Club. These sites have always been part of the stadium financial modelling.

It is the use of club funds for property purposes for wider developments in the area that impacted cashflow and will not realise development gain that doesn't sit well with me. I do not see how the Club will benefit from the developments in the High Road West area as the ownership is now outside of the Club. ENIC could of course decide to pump equity into the club using the profits from these sites but I am not expecting them to.

 

[Wine Gum]

Presumably the sale to the enic company meant the club didn't have to be involved in the entire planning and development process?
I also assume that the South development area is still owned by the club and will remain so.
Would I be right?

I believe the ownership of the Southern Development remains with the Club. It is likely that a Development partner will be sought for the flats at some stage which I wouldn't see as a problem as it would mitigate risk and realise profit rather than the club doing the full development itself. The club will also seek partners for the Extreme Sports & Hotel Buildings rather than taking on these speculatively to again mitigate risk.

List of properties that sit outside the club structure:

 

[JamieSpursCommunityUser]

Looks like Haringey Council have finally managed to muster the resolve to make an actual decision to hold a residents ballot on High Road West.

It only took them 10 years.

In typical Haringey fashion they were to hold a vote on having the ballot in May, but infighting saw the Labour Councillor replaced days before the vote, which was then delayed to June, and then delayed again to July just for old times sake.

It's not clear however if they have set a date for the ballot. The article says the summer, but that decision will probably take another 10 years of pointless dithering and obfuscating. All the while leaving the residents living in years of perpetual uncertainty.

Love Lane Estate residents to vote on regeneration plans | Haringey Community Press

Ballot of residents on Tottenham estate agreed by Haringey Council, reports Simon Allin, Local Democracy Reporter People living on an estate earmarked for demolition under a regeneration scheme will be given a vote on rehousing plans. Haringey Council’s cabinet have agreed to hold a residents’...

tottenhamcommunitypress.co.uk

 

[DogsOfWar]

I'd also suggest another benefit of the re-developed infrastructure around the stadium is that it makes it a much more attractive proposition for events.
A 'world class' environment will attract higher prestige events which generate higher income.

 

[Stuart Leathercock]

It's not a "cash cow for ENIC", that's entirely false and misleading. ENIC does not take cash out of THFC. Ever. That is not their business model. They acquire businesses that are undervalued, invest to add value and then sell them when they have multiplied in value.

They do not take cash income out of their investments. Is that clear?

ENIC are the opposite of an asset-stripper. They build assets long-term, to benefit from the capital gains when they eventually sell them. Even before they sell them, the increased asset value on their balance sheet makes it easier for them to finance other acquisitions and other developments.

The acquisition of land in Tottenham for mainly-residential development has several purposes. One is to increase the volume of good quality property in the vicinity of the stadium, to raise general property values locally by improving the local housing stock. Another is to keep Haringey Council onside by continuing to show their commitment to local regeneration, to make up for the elimination of affordable housing in the original stadium development after the financial crash.

But the most important is to generate capital receipts - profits - from the sale of housing that can be used to reduce the long-term debt from the stadium development itself. It's exactly what Arsenal did, but we're doing to it to a much wider and more extensive level. Reducing debt for THFC is entirely different to generating cash for ENIC.

Reducing the long-term stadium debt reduces the annual repayments on that debt. That, in turn, affects the money available to run the footballing side of the business; thus it affects player salaries, transfer fees and ticket prices. In that way, the land acquired for development indirectly feeds into the quality of the football.

Not quite…. Arsenal retained property within the club and sold it to improve the club’s cash flow post development gain. ENIC have instead bought the property from THFC for ‘fair value’ pre development gain and are now making large profits themselves from the development gain. It would take some forensic accounting to know how much ENIC end up making from these property deals. I would envisage upwards of £80m. It seems their paper profit of about £1.5billion+ on THFC Isn’t enough for Lewis and Levy.

 

[Dougal]

 

[southlondonyiddo]

View attachment 92549

Bell n Hare must be pissed. Wonder what % of that new sites profits goes to the club!?

 

[SecretLemonadeDrinker]

View attachment 92549

Just posted this image on Skyscrapercity but suddenly realised that it might be your own photo. If so then, retrospectively, I hope you're okay with that? If not, I will remove.

 

[Dougal]

Just posted this image on Skyscrapercity but suddenly realised that it might be your own photo. If so then, retrospectively, I hope you're okay with that? If not, I will remove.

I’ve no idea, I nicked it from somewhere else

I’ll send you my PayPal details so you can compensate me

 

[Wine Gum]

The NHS North Central London CCG have included this in response to the Goods Yard / Depot Planning Application.

It looks like The Club might need to find another use for the proposed Health Centre Building.

 

[fridgemagnet]

The NHS North Central London CCG have included this in response to the Goods Yard / Depot Planning Application.

View attachment 92980

It looks like The Club might need to find another use for the proposed Health Centre Building.

Isn't this one of the things the locals want/need but Harringy/Government don't want to pay for a GP/yearly maintaince/rent etc.