Slough Council Faces £33.7 Million Cost for Safety Upgrades at Tower Block Acquired for £1

A local authority anticipates an eventual expenditure of £33.7 million for the replacement of cladding and the implementation of additional safety provisions at a residential tower block it initially purchased for £1. Slough Borough Council acquired Ground Rent Estates 5 Limited (GRE5), the entity owning Nova House, a refurbished office block situated in Slough, during 2018. This development, comprising 68 flats located in Buckingham Gardens, did not pass two separate inspections conducted following the Grenfell Tower disaster in 2017. By the close of August, the safety initiative, which experienced delays due to Covid restrictions and “a range of additional defects and technical issues,” had accumulated costs totaling £30.9 million. The installation of insulation and new cladding on the structure commenced in September 2023 and had reached approximately 70% completion by the summer, according to the council. The fitting of the cladding is anticipated to conclude by the end of the current month, with the entire project scheduled for completion by January 2025. The authority reported an expenditure of £19.9 million on cladding and its installation at Nova House up to the end of August, with an additional £1.2 million projected for this component. Furthermore, the council stated that GRE5 has “instructed lawyers and other professionals to pursue recovery action” concerning the work. Leaseholders provided a contribution of £500,000, and after the receipt of grants, other funding, and compensation, the authority’s ultimate financial exposure is expected to range between £1.9 million and £2.8 million. GRE5 initiated a claim against the insurance company Allianz in September 2021. Directors of the company engaged with representatives from Allianz and a mediator, leading to the settlement of the case for an undisclosed sum. The council confirmed that these funds were received in July 2023. The authority’s assets disposals cabinet committee is scheduled to receive an update regarding the project on Thursday.