Lampton 360Group Report

Quarters 1 & 2, 2017/18

Purpose of reportThe purpose of this report is to update the cabinet on the performance of the Lampton 360 group;Recycle 360, Development 360 and Investment 360 for Quarters 1 & 2.

ContentsLampton 360OverviewBoard of DirectorsExecutive SummaryEmployment and TrainingGovernance

Recycle 360OverviewReport

Development 360OverviewReport

Investment 360OverviewReport

Conclusion

WelcomeI am pleased to highlight, the considerable progress made in terms of establishing and growing Lampton 360 and its subsidiarycompanies, moving the group forward in its ability to deliver services to the London Borough of Hounslow.

This report sets out the activities of each subsidiary company, along with client feedback where appropriate. In addition, the boardreports, that underpin this report are available upon request.

Dave Ward – Managing Director – Recycle 360Barbara Richardson – Managing Director – Property 360

Background to the Lampton 360 Group

Lampton 360 stands for integrity, reliability and customer service. Our focus is to ensure we do the best job possible whilst maintaining positiveengagement with all of our customers, employees and the general public. Our aim is to be seen and recognised as a positive influence in people’s lives.

We can only achieve this by engendering a culture of openness, honesty and transparency which in turn helps our people to become great at what theydo. We need to act with conviction and ensure we deliver upon our commitments. We need to live up to the standards that are set and expected of us.We want to be fantastic to work for and with.

We are an organisation which is ‘of the Council’ but different, combining commercial expertise with a commitment to public service. It is a companywholly owned by the council, with all surpluses made returning to the council.

We will seek out business opportunities with clients who share our values and where our activities are in line with the policies and values of our soleshareholder the London Borough of Hounslow.

Board of DirectorsLampton 360 Ltd is led by a strong board of Directors:

Howard WoollastonNon-executive Chairman of the board of Lampton 360 Ltd, Howard has over 40 years experience in the property industry andis a member of Royal Institution of Chartered Surveyors.

Antony MiddletonAntony is a non-executive Director with considerable facilities maintenance experience in both the public and private sector,including Croydon County Council. Antony sits as non-executive Director of Lampton 360 Ltd. Antony is Chief OperatingOfficer with Coast to Capital.

Howard EllardHoward has over 30 years experience as a regulator and waste management professional. Howard sits as a non-executiveDirector of Lampton 360 Ltd with oversight particularly in the waste services provided by Lampton 360 Ltd.

Dave WardWith over 30 years of experience in strategic and operational management, Dave sits as an Executive Director of the board ofLampton 360 Ltd. An influential professional with a proven track record of designing and implementing successful changeinitiatives combined with excellent project management skills.

Executive SummaryLampton 360 is becoming an increasingly recognised brand locally and regionally. The senior management team have also representedLampton Group at several conferences in a key note speaker capacity as well as hosting a Local Authority Trading Company trainingsession for The City of York, further enhancing our reputation and image.

Recycle 360Delivery of the Council’s Recycle Refresh phased roll out of a new set of recycling boxes to all kerbside properties took place from 12 Juneto 3 July. Following the refresh, the Council’s kerbside refuse customers were moved from weekly to Alternate Weekly Collections (AWC)from 10 July. At the same time, rescheduled garden waste services commenced, moving all collections to the alternate week from thefortnightly scheduled refuse collection. In addition, final changes were made to the kerbside recycling rounds in week commencing 10 July,adjusting some collection days to match the optimised refuse rounds.

Development 360Nantly House, Hounslow is due have its ground breaking ceremony in Autumn 2017, with a planning submission target for Acton Lodge,and Two Bridges at the end of October, beginning of November. Once this has been completed the development team will have 3 sites,(approx. 120 units) either on site or submitted for planning. This is 10% of its identified development programme.

All 15 sites currently identified in the development programme have had an initial feasibility appraisal undertaken, which now forms part ofour updated business plan due to be presented to Cabinet in October 2017. This demonstrates an anticipated return to LBH in the regionof £60m.

Investment 3607 properties have been acquired, with 5 currently occupied. The remainder are due to be occupied once refurbishment works have beencompleted. Offers made and Board approved in this quarter is 37, currently awaiting acceptance from developer. Properties viewed,reviewed and offers made since April 2016 have totalled over 245 properties.

Managing Agents have been established, tenancies commenced, and to date we are operating with zero arrears. All properties have avalid CP12 Certificate, EPC Certificate, PAT Testing Certificate, and Asbestos Survey where appropriate.

Recycle 360Recycle 360 is led by Managing Director Dave Ward supported by the Operations Manager Dan Smyth. Recycle 360 was establishedto provide high quality recycling and waste collection services for its customers cost effectively and efficiently and started operating onthe 31 October 2016.

The report describes the service outputs of Recycle 360 for the period of 1 April to 30 September 2017 of providing the householdrecycling and waste collection service to LB Hounslow which commenced on 31 October 2016.

Delivery of the Council’s Recycle Refresh commenced in mid May, putting in place 20 recycling rounds prior to the refresh of boxes.Refreshing the rounds, through a communication campaign and phased roll out of a new recycling box set to all kerbside propertiestook place from 12 June to 3 July. During the same period final scheduling and communications took place for the rollout of AlternateWeekly Collections for kerbside refuse from 10 July. Considerable problems with the refresh arose from the Council’s third partycontainer delivery contractor failing to deliver effectively combined with some restock problems on the Council side.

In addition, during the phased roll out it was expected that crews would require overtime to complete scheduled work, but R360 alsohad to support the planned 20 scheduled rounds with an additional two to three crews a day. Significant problems with contaminatedfood waste and plastic levels and a failure of many to comply with the requirements in the provided literature further compoundedresident complaint levels.

A garden waste (GW) ‘clear all’ was operated until end May, to support the Council in delays with their systems implementation and toextend the period for previous customers to re-subscribe. A new GW schedule was developed for after 10 July and R360 continued tomanage the subscription data on the client’s behalf pending the overdue systems integration.

The AWC service for residual waste started with 6 rounds, reduced from 11 for weekly collections. No period of grace was given toresidents regarding excess waste, and from day one R360 crews stickered and reported excess incidents. During the first weeks, anexpected increase in complaints of missed collections were received from residents misunderstanding which week they would beserved in, or missing the advance communications entirely. Despite new rounds and routes, and changed crews, justified missedcollections were no greater than expected, and decreased in the weeks following the changes as crews became familiar with theirareas.

Recycle 360 – Cont.R360 continue to operate an additional 2-3 Recycling crews each day as well but with the overtime requirement having reducedsince the last quarterly update. Many of the same factors reported last quarter remain. There is light on the horizon with the moveinto the Materials Handling Facility during mid-November which should see the recycling collection rounds operating more efficientlydue to being able to tip off materials more quickly than is possible at Space Waye currently.

Overall, towards the end of this reporting period, the service has settled down and it is pleasing to receive positive feedback aboutthe quality of the container returns from a number of stakeholders.

The next significant challenge to R360 is the operation of the new state of the art Materials Handling Facility. The challenges will bearound ensuring that the staff are well trained in all aspects of the operation with a clear focus on health and safety, fire preventionand efficient sorting and preparation of recyclable materials for sale and transport into the re-processing markets

Property 360Property 360 is a property company that has been established to create two bespoke business streams led by Property 360’s ManagingDirector Barbara Richardson and Head of Land & Acquisition Pankaj Vara.

Lampton DevelopmentLampton Development 360 Ltd is a start-up business and it is fundamental that working capital is made available in order to cover the costsof staffing resources and the progress of due diligence on sites in our development programme.

The Business Plan dated July 2016 and approved by the Cabinet has been updated and was approved by the Lampton Board on 26 July2017. The updated Business Plan will be presented to the Cabinet meeting on 10th October 2017 with recommendations for approval.

Delivery Plans and KPI’sProperty 360 has established a set of delivery plans and KPI’s for both development and investment business activities. There are 21 keytasks in the delivery plans, (appendix 3) of which;

62% are complete24% are underway14% have yet to start

The 14% yet to start, are associated with schemes yet to commence work on including Nantly House which has been delayed with respectwith start on site.

Property 360 – Cont.Lampton InvestmentLampton Investment 360 Ltd is a start-up business and it is fundamental that working capital is made available in order to cover the costs ofstaffing resources and the progress of due diligence on sites in our development programme.

The Business Plan dated July 2016 and approved by the Cabinet has been updated and was approved by the Lampton Board on 26 July2017. The updated Business Plan will be presented to the Cabinet meeting on 10th October 2017 with recommendations for approval.

The Board will recall the change to move away from purchasing individual properites as presented in the updated business plan to acquirenew build or modern complete blocks. To date we have acquired 7 properties under the previous approval.

Delivery Plans and KPI’s for 2017-2018Property 360 has established a set of delivery plans and KPI’s for both development and investment business activities. There are 17 keytasks in the delivery plans for this financial year of which;

18% are complete24% are underway58% have yet to start

The 53% yet to start, are associated with some works that is still in progress and due to commence on the website imminently as well asfinalising the setup of the management company structure for Nantly House which will complete once start on site has begun.

Employment and Training OverviewInvestment in our TeamLampton 360 group currently employs 178 people. Lampton 360 takes the investment in its team very seriously. The following methods havebeen employed to ensure that our workforce represents the best possible face of the business

London Living WageFrom the inception of the service, Lampton 360 has been committed to applying the London Living Wage to our staff. This commitment haslead to improved terms for Recycle 360 staff, drivers and supervisors and is, we believe a clear demonstration of our organisation'scommitment to the values of our shareholder, the London Borough of Hounslow.

Training and developmentThe group offers a range of training opportunities for its staff. This includes (where appropriate) driver training for recycle loaders so that theycan apply for future vacancies, English language training, regular health and safety update training and toolbox training sessions. During theperiod we have also undertaken a team building exercise for managers and supervisors, which was facilitated by a team of trainers from acompany called ‘culture builders’.

“Recruit from within”Lampton 360 operates a “recruit from within” policy. In order to enable this development, the fruits of this policy have already been seen at endJune Recycle 360 was able to make permanent a number of drivers that were on temporary contract due to staff turnover. In addition, a loaderwho had got his own HGV licence was seconded into a driving position and was later successful in securing a permanent driving role.

Employment and Training OverviewStaff Morale (Recycle 360)Transferring staff in from a previous service provider can be difficult task. Whilst not without its difficulties, we were very pleased to receivefeedback from the union representatives highlighting an improved morale within the workforce since the service transferred to Recycle 360.We are confident that the continued investment in the team through training and development will see this continue.

Board TrainingTwo training sessions for the board of directors have been facilitated by John Langford, who is a highly regarded trainer in this field. Thesessions aim to encourage the board to work cohesively and play to each other’s strengths.

Union RecognitionUnion recognition has been achieved for the Lampton 360 group of companies.

Management Team DevelopmentThe core management team and the supervisors were asked to attend a “culture builders” workshop to engender the sense of onemanagement team supplying a consistent approach across the team. This has been very successful and created an cohesive workingrelationship between the various Lampton Group divisions.

Governance OverviewGovernanceLampton 360 considers governance as key to a successful business. The governance function is led by a Business Manager. This role wasvacated by James Barrett at the end of July and remains vacant currently despite having undergone a recruitment process. Further work isbeing carried out to fulfil this key role that works in conjunction with the Council’s Head of Governance Peter Large, the internal auditors PWCand the Overview and Scrutiny Committee.

AuditMazars have been appointed as auditors for all companies in February 2017. Prior to this RSM completed a review of the work undertakenbut did not get any audit appointment from Lampton 360, this was on behalf of LBH.

There will be an ongoing process for separate divisions of the group to go through a combination of various internal audits especially aroundhealth and safety.

Feedback from RSM:

“The business plans are comprehensive and include evidence that:• Significant work has been undertaken to develop sound business plans• Recent work on financial forecasts has demonstrated more detailed thought about the medium term• Viability of the proposals and the capacity to deliver services from October 2016 onward.• Assumptions made in the calculations have been stated clearly.”

Overview and ScrutinyThe Senior Management team have met with Councilor John Chatt Chair of the Overview and Scrutiny Committee to discuss the reportingprocess for Overview & scrutiny Committee. The intention is to share all development plans and performance of the Lampton 360 Group withthis committee.

ReportingLampton 360 and its subsidiaries report to its Board of Directors on a monthly basis. The Health & Safety Committee was established in July2017.

Recycle 360 ReportStaffFollowing the Refresh and AWC changes, Recycle 360’s establishment was reviewed again and aligned with the new service levels; for a shortperiod it had a full establishment as planned without surplus and the agency requirement was significantly diminished. Unfortunately, as wasexpected during a change project impacting rounds and schedules, an increase in staff turnover, especially drivers, was experienced in Q2.Informal exit interviews reveal two main factors: employees from other countries, especially eastern Europeans, returning to their home countryand others moving to other driving roles locally. The agency has also been struggling with the recruitment of drivers, citing both localcompetition and potential Brexit impacts. Morale, which was effected in June and July by the demands of the service changes, appears to haveimproved significantly into the latter part of the reporting period.

R360 has made permanent three loaders previously on temporary contracts, and is in the process of making permanent some long standingagency drivers. Adverts on the Council’s website for three weeks realised no applications, but a number of applicants did come forward throughword of mouth at the end of September, with shortlisting and interviews planned for early October. R360 continues to rely on the agency for thesupply of additional staff during this recruitment, and to deliver several activities above the core operation discussed above: increasedcontainer deliveries and an additional refuse round removing a variety of wastes, including flytips, on behalf of LBH Client.

Sickness Absence across the service is shown in the table below. When forecast across the whole year, this equates to 6.7 days lost perperson which is within the industry standard of 10 days per person per annum.

2017/18 Apr May Jun Jul Aug Sep Q1 Q2 YearEnd Proj

Total Absence(days) 78 137 71 80 77 106 286 263 -Avg days / FTE 0.46 0.82 0.42 0.50 0.49 0.68 1.70 1.67 6.74% Working dayslost 2.3 3.7 1.9 2.4 2.1 3.2 2.6 2.6 2.6

Recycle 360 ReportReporting continued.Health & SafetyAn annual price review with the current PPE supplier is set for mid-October.

As reported in the last Q4 report, the issue of lack of dropped kerbs at various communal bin locations was raised with the LBH client team. Todate, there has been little or no movement in respect of resolving any of these sites, and despite various requests for an update none had beenprovided before this report was authored. Reasonable timescales were originally given for action, and subsequently extended to end October.

R360 are continuing to closely monitor the number of vehicle damage/insurance claims made. These are shown in the table below as RoadTraffic Accidents. This number includes some incidents where claims are still being investigated and where R360 deny any involvement. Thecontinued use of CCTV footage from our vehicle cameras is being utilised to help eliminate false allegations, as well as in health and safetyrelated disciplinary matters.

During September, the corporate Health and Safety Manager provided brief but specifically targeted accident reporting training sessions to theworkforce to help improve R360’s H&S reporting, especially of near miss ‘incidents’ and violence or aggressive behaviour by members of thepublic: This training has had a positive impact on reporting as is evident in the updated table below.

R360 H&S Summary 2016-17 Q3(Oct-Dec)

2016-17 Q4(Jan-Mar)

2017-18 Q1(Apr-May)

2017-18 Q2(Jul-Sep)

Incident (near miss) 0 0 2 8Minor Injury 0 3 1 4

Major/serious injury 1 0 0 0RTA (no injury)* 7 5 14 11

Violence/aggression** 0 0 0 3

Recycle 360 Report

Operational updateThe early indications as to the success of both the Recycle Refresh and AWC implementation are that it has been positive in the main.However, there are a number of issues that are being reviewed on an ongoing basis.

R360 continue to operate an additional 2-3 crews each day as well but with the overtime requirement having reduced. Many of the samefactors reported last quarter remain.

• Poor customer presentation e.g. contaminated boxes, materials presented in the wrong colour box• The collection staff adjusting to the new rounds and work change of collecting 2 additional materials in the form of plastics and food waste

which was previously collected by the twin-pack crews• Tipping delays at Space Waye where delays of anything up to 2 hours are being experienced. Much of this is due to the fact that the 2

additional material streams are being tipped as well as the logistical issues posed by hauliers taking away bulk loads. R360 and LBH staffhave been working closely together to try to minimise the delays on-site

• Missed deliveries of boxes to households.

There is light on the horizon with the move into the Materials Handling Facility during mid-November which should see the recycling collectionrounds operating more efficiently due to being able to tip off materials more quickly than is possible at Space Waye currently.

Plastics contamination on kerbside recycling remains a significant concern, despite a variety of communications to residents in Q2, includingusing plastic specific feedback. Although crews report some improvement, the current levels of plastic bags and hard plastics will have adetrimental impact on the MHF sorting equipment efficiency, as well as the quality of output. Communications in Q3 are expected to focus onthis issue and crews will be reminded of the accepted materials specification. If improvement is not realised in October, consideration will begiven to a zero-tolerance approach to collection of any boxes with non-conforming material.

Recycle 360 Report

Reporting continued.Under the new system, paper and card are presented at the kerbside in the blue box. Previously card was in the unsorted box and paper wascontained in a separate bag. R360 crews’ ability to sort mixed card and paper at the kerbside within the given timescales appears to have beensignificantly overestimated and the quality of paper has decreased with financial implications for its desirability in the reprocessing market. Withresidents often keeping the box in the house, laying in sheets of either paper or card as they are generated through the week, in many casesboxes require significant time to sort. This is being closely monitored, but sustainable solutions involve either giving crews more time hencedecreasing productivity further, changing the presentation system at significant cost or accepting a lower quality of product than hoped.

A specific focus on the quality of container replacement after emptying has seen an observable improvement in this quality aspect which hasreceived positive feedback, both in public forums and from senior LBH Councillors and officers. Where appropriate this feedback has beenshared with staff to demonstrate the impact of quality behaviours.

Alternate Weekly Collections:AWC started on Monday 10 July, with 6 rounds, reduced from 11 for weekly collections. No period of grace was given to residents regardingexcess waste, and from day one R360 crews stickered and reported excess incidents. During the first weeks, an expected increase incomplaints of missed collections were received from residents misunderstanding which week they would be served in, or missing the advancecommunications entirely. Despite new rounds and routes, and changed crews, justified missed collections were no greater than expected, anddecreased in the weeks following the changes as crews became familiar with their areas

A number of potential risks were identified that could have caused significant risks to the project such as: a wholesale shift from 140 litre to 240litre bins; overestimated round productivity; uncontained wastes; significant increase in dumping and resident outrage. It is noticeable however,that by the end of September the AWC service change appears to be a great success. Some problems do remain however, ‘Flats on sacks’and waste left out inappropriately.

Recycle 360 will work with LBH to support a change to the Flats Above Shops service and to remove the additional services as and whenthose plans are developed.

Recycle 360 ReportReporting continued.Bin and Container Deliveries:

A significant number of requests for larger 240 litre bins were received by LBH from residents before and after the change, but thesebegan to be processed after 10 July, with doorstep assessments considering individual residents use of the available recyclingservice and need rather than demand. As a result of processing these requests, bin delivery requests increased dramatically, fromtens a month to over a thousand. R360 mobilised additional resources and worked weekends to meet the increased demand.

Recycle 360 Report

Reporting continued.Indicative Performance: Below is a table that provides the total count of the Service Requests received with no account for whether they werejustified or not or whether they were entered correctly, completed on time, cancelled due to errors in entry or any other detail. During theservice change period, a significant number of new Collective users were introduced to help manage the increase in customer demand – alarge number of errors were made entering SRs manually, and these are within these numbers; e.g. not checking new schedules beforerecording a missed bin, not checking non-collection events etc.

Service Class Service Type Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

Escalation Disputed SR 11 27 26 12 11 5 153 174 96

Quality Issue

Bad Driving 3 0 1 0 0 1 0 0 1Foul Language 2 3 2 1 5 3 6 8 3Insurance Claims 4 4 5 4 0 5 5 3 0

Not returning bin 14 15 18 12 10 11 14 17 16

Pulling out 0 1 0 1 0 0 0 0 0Removing bags 6 1 1 0 2 0 0 1 0Smoking 1 1 0 0 0 1 0 0 0

Waste

Bin Request 10 41 27 16 15 95 1356 1638 1005Bulky waste 256 210 340 251 287 249 286 322 256Container request* 1107 2029 2509 1047 2287 4184 5531 3250 1713Extra Collection 1 1 0 13 13 15 18 50 84Missed Bin 487 633 761 941 880 1370 1333 948 968

Repair Communal Bin 5 2 3 4 0 0 1 1 1

Replace Damaged Bin 8 6 1 6 0 9 9 8 3

Replace Lost Bin 25 6 0 1 4 1 6 1 1

*NB Container/bin orders does not include many received directly from LBH Door knocking activities, or garden waste subscriptions.

Recycle 360 Report

Reporting continued

Southall Lane Depot – Materials Handling Facility (MHF):

The officially approved name for the new MHF is “Southall Lane Depot”.

With the handover of keys expected on 17 November, R360 has been ramping up activities to ensure a smooth transition and good operationsfrom 20 November. Wilmott Dixon, Principle Designer and Contractor, expects to deliver a wide range of supply chain training to R360 officersin the lead up to the hand over. All such training will be videoed and the training videos included in the OEM information to be transferred

R360 has been working with LBH’s preferred equipment supplier to specify the initial plant; a front-end shovel, a telehandler and one or twoforklifts or waste tele-trucks. This equipment will be on an initial trial basis, with the ability to swap items for other appropriate equipment duringthe period. In the new calendar year, the intention is to formally procure the preferred options on a long term hire arrangement.

The sorting and baling equipment has been installed, and power-up and commissioning is expected in early October. A ‘product-champion’ hasbeen nominated from the workforce who is our current COTC (Certificate Of Technical Competence) holder and yard operations lead and hehas been observing the installation of the sorting and baling equipment.

ICT has been specified and other than new CCTV and weighbridge PCs along with the new network hardware, all that remains is transferringexisting officer equipment to the site from other offices. As a result of LBH’s wider WorkSmart change program affecting the Civic offices, asurplus of furniture is being held by the Council and has been offered to R360 for the new site. With some 20 matching desks, pedestals,chairs and cabinets this is a considerable cost saving. Premier Moves are being used again to remove the furniture to site, and are workingwith Wilmott Dixon to arrange access for delivery prior to site handover.

A comprehensive site Operational Plan is in development and an Environmental Management System has been prepared. These will includeall the relevant compliance strategies, plans, inspection regimes and links to OEM references as well as an action plan for environmentalimprovement. An Environmental Policy has also been drafted and its approval is the subject of a separate Board report.

Recycle 360 ReportThe Next Steps (Summary & Conclusions)R360 and the Council have worked very closely together to oversee a major service change to the provisions of household recycling and wastecollections. The performance outputs as well as the quality outputs have improved over those delivered by the previous contractor. Sicknessabsence is within acceptable levels.

The next significant challenge to R360 is the operation of the new state of the art Materials Handling Facility. The challenges will be aroundensuring that the staff are well trained in all aspects of the operation with a clear focus on health and safety, fire prevention and efficient sortingand preparation of recyclable materials for sale and transport into the re-processing markets.

Property 360 ReportLampton InvestmentsProperty Purchase SchemeProperty 360 is moving forward with viewings of properties and offers. We currently have 7 properties in ownership and 5 tenanted. All propertieswill have rents set at 90% of market rent, or lower where possible.

Rolfe East are managing the properties which have completed and deposits are being placed TDS (Tenant Deposit Scheme) operated by RolfeEast.

Bakers Road, Uxbridge – 37 UnitsThis is a new build development by Inquilab Housing Associations for 37 private apartments in the town centre of Uxbridge and we have made anoffer of £12.65M to acquire the entire block of 37 apartments for PRS. An Investment report was presented to the Board meeting on 11 July 2017and approved.

We have been in regular contact with the agent acting on behalf of Inquilab HA and understand that there has been some issues on completion ofthe building with the developer and disputes currently being negotiated in respect of costs.

We remain keen to progress, however at this stage we are not able to agree terms. We also understand that other parties are keen to acquire fromInquilab but no firm offers are in place. We will update the Board accordingly.

Investment Pipeline: Stage of Process – 2016/2017 No ofUnits

Acquired 7Under Offer 2Under Review 37Viewed by Rejected 0Total 46

Property 360 ReportLampton Development 360Development Programme11 sites have been identified in Phase 1 of our development programme and a further 5 sites in phase 2, for which a report prepared by PeterMatthews is now being presented to the 10 October 2017 Cabinet to request release from the General Fund Sites as surplus to requirement. Thiswill make a total of 15 sites for redevelopment (as the New Road Car Park site has been removed from the list).

These 15 sites have been updated and categorised into short term and medium term (although some may move into a longer term followingfurther discussions with the planners). We have assumed a start on site (SOS) position for these 2 categories on the basis that we can getplanning on all short term sites by end of quarter 4 – 2017 and quarter 2 - 2018 (in respect of Green Lane/James Street allotments), to enablestart on site. This will necessitate the need to appoint design teams and start the planning process on all short term sites by September 2017.

Short term SOS 2018Medium term SOS 2020

5 sites now sit in short term, 10 sites currently sit in medium term,Nantly House 74 units Bedfont Lane 32 unitsActon Lodge 23 units Stoney Wall Community Centre 23 unitsTwo Bridges 24 units Nene Gardens 34 unitsGreen Lane Allotments 263 units Montague Road 26 unitsJames Street Allotments 45 units Hounslow Youth Centre 50 units

Royal Naval Association 25 unitsAshmead Depot 46 unitsBridge Road Depot 100 unitsNew Road Triangle 144 unitsShow People’s Site 334 units

Initial due diligence and financial appraisals have all been carried out on all short term sites and the Board has approved costs associated withthe planning work for Acton Lodge and Two Bridges which are linked sites.

Property 360 ReportLampton Development 360Reporting Continued.

Acton Lodge, Brentford & Two Bridges, Bedfont - 47 units (total)These two sites are linked for the purpose of planning and delivering affordable housing. The Development Pipeline Report was presented toBoard on 11 July 2017 and approved for the costs associated to progress the planning process and appointment of the team.

There is one option agreement for these linked sites which is currently in the processing of being signed by LBH.

The initial feasibility as outline in the report is for Acton Lodge as all private sales (23 units) and the Two Bridges site will be 14 units for social rent(plus an office) for adults with special needs and the remainder 10 units for Subsidised PRS.

The design work is underway and initial discussion have taken place for pre-app meeting with planning on both these sites. Further changes areunderway to establish the overall design and mix of units.

Green Lane Allotments – 263 unitsThis site has some challenges in terms of noise zone area for Heathrow, and also some ecology issues to resolve. This site has yet to beprogressed following further evaluation by our JV Partner and the planning consultants, Carter Jonas who have prepared an initial PlanningStrategy for all the 15 sites to be considered in the framework. This site was deferred at the Board meeting on 11 July 2017 subject to thedevelopment of the planning brief. Carter Jonas are in the process of updating their initial report for the sites and once this is concluded furtherdiscussions can be had to establish the process to progress the site.

James Street Allotments – 60 unitsThis site is to be linked for planning and affordable delivery with Green Lane Allotments and also has some challenges in terms of access, andecology which will need to be resolved and solution found. Negotiations with neighbouring land owners will be necessary to maximise the sitespotential in massing and density. This site will be picked up with our JV Partner, Be Living to progress

Property 360 ReportLampton Development 360Reporting Continued.

Medium Term SitesFurther details on the medium term sites will be reported to the Board once we have reviewed these with our JV partner and our jointly appointedplanning consultants, Carter Jonas. Carter Jonas have now been instructed to update their initial report so that further discussions can be takeplace to review the sites for re-grouping / linking to bring forward the next focus on sites for consideration.

Feltham Housing ZoneThe Feltham Housing Zone has 9 sites that have been identified by the strategic planning team and that could draw down some of the allocatedgrant from the GLA. The GLA is pushing for business plans for these sites, in order for this grant to be formally awarded and secured. There ispressure for Lampton 360, to focus some time and effort into 3 of these sites which are currently in our programme. These are Ashmead Depot,New Road Triangle.

New Road TriangleThis sites is now likely to come forward sooner as previously it was held back for Lidl to put a temporary store as part of negotiations LBH werehaving, however these have fallen through and therefore discussions are currently in process to bring this forward in the programme.

Property 360 ReportStrategic Reporting Lampton Development 360July 2017 – September 2017 Targets

No. TaskDescription

Link to KeyObjectives Action Item Target Due Date Lead

Officer Progress to date Status

4Operational 2,6 Establish a framework of consultants with JV partners Jul-17 BR Complete

5Operational 2,6 Establish a framework of architects with JV Partners Sep-17 BR Complete

7Operational 5 Review M&A & Partnership Agreements for setting up ofLampton Development 360 LLP Aug-17 BR & Peter

Large

Partnership Agreement with PeterLarge.Complete

9Operational 1,2, Execution of Loan Agreements and Associated documents Aug-17 BR Complete

10Operational 3,6 Fountain Leisure Centre, Brentford - Option appraisals Jul-17 BR Complete

11Operational 3,6 Fountain Leisure Centre, Brentford - Proposals to DirectorLeisure & Corporate Property Aug-17 BR Complete

12Operational 3,6 Fountain Leisure Centre, Brentford - Single Member Decision/ Cabinet Decision to Proceed Sep-17 BR Underway

15Operational 1,2 Nantly House Unilateral Undertaking / Section 106 Aug-17 BR / PV Complete

16Operational 1,2, Nantly House Acquisition of Land Aug-17 BR / PV Complete

17Operational 1,2,3,6 Nantly House Start on Site Sep-17 KCDelays, due to need to amendplans via a s73 notice, andoriginal planning delays.

20Operational 1,2,3 Action Lodge / Two Bridges Option Agreement Sep-17 BR / PV Option finalised & awatingsignatures

Property 360 ReportStrategic Reporting Lampton Investment 360July 2017 – October 2017 Targets

No. Task Description Link to KeyObjectives Action Item Target Due

DateLeadOfficer Progress to date Status

3Operational 5 Develop and write tenants handbook /information Aug-17 KC / NB

Underway - this will develop and takeaccount of landlord legislation, andgeneral tenants information.

5Operational 7 To select maintenance companies to dealwith initial let & void works Sep-17 KC Underway

15Strategic 1,2 Execute of Loan agreements andAssociated Documents Sep-17BR Complete

17Operational 2 PRS Units for Nantly House (15 units) -Start on Site Sep-17PV

ConclusionThe purpose of this report is to update the Cabinet on the performance of the Lampton 360 group; Recycle 360 and Property 360 forQuarters 1 and 2.

As the Cabinet will see it has been another challenging but rewarding quarter for the group. The very diverse range of businessactivities has seen some very positive progress.

The Recycle 360 business has been instrumental in bringing about the Council’s service changes which came with many operationalchallenges. It has been pleasing to receive positive feedback on the service provided especially in the area of service quality with boxesand bins being returned to collection points in an acceptable way. The next quarter sees this business facing more exciting times withthe commissioning of the new Materials Handling Facility taking place in mid-November. This state of the art facility will help R360maximise the recycling efforts of the wider community as well as striving to meet the Council’s recycling target.

Property 360 has made considerable progress in establishing both its investment and development businesses.

Investment - The positive impact of the investment group has already seen a local resident be moved from bed and breakfastaccommodation into their own home. However, the slow speed of individual properties purchases does not fully meet our objectivesmoving forward. Therefore, has been addressed in the update Business Plan, being presented to October Cabinet.

Development - The Progress made to date on the development pipeline has been slow to start due to delays in loan agreementarrangement, which proved to be longer than anticipated, however, these are now in place, and the team are pressing on with bothNantly House, Hounslow start on site, anticipated in October 2017, and a submission for planning for Acton Lodge, Brentford and TwoBridges, Feltham targeting end of October, beginning of November 2017.