Item 18 - Acquisition of former care home known as Frank Downie House, Ottawa Crescent, Clydebank
West Dunbartonshire Council · 25 March 2026
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Resources West Dunbartonshire Council: 24 March 2026 ___________________________________________________________________ Subject: Acquisition of former care home known as Frank Downie House, Ottowa Crescent, Clydebank 1. Purpose 1.1 The purpose of this report is to provide Council with an update on the discussions with CCG (Scotland) Ltd regarding the acquisition of the former care home site at Frank Downie House, Ottawa Crescent, Clydebank. The report outlines the position reached through partnership discussions and seeks Council approval to proceed with site acquisition. 2. Recommendations 2.1 It is recommended Council: (i) Approves the acquisition of the former Frank Downie House site at Ottawa Crescent, Clydebank, from CCG (Scotland) Ltd for a consideration of £379,000, representing the land cost incurred by CCG with no profit applied. (ii) Notes the Scottish Government has committed £379,000 in grant funding to fully cover the land acquisition costs. (iii) Authorises the Chief Officer, Resources to conclude negotiations. (iv) Authorises the Chief Officer, Regulatory and Regeneration to conclude the transaction on such conditions as considered appropriate. 3. Background 3.1 The site for acquisition is the former care home known as Frank Downie House. West Dunbartonshire Council (the Council) previously undertook an exercise to rationalise the care homes within the Clydebank area which resulted in a new Clydebank care home being approved and the closures of: o Mount Pleasant Care Home. o Boquhanran House Care Home. o Frank Downie Care and Day Care Centre. o Queen Mary Day Care Centre. 3.2 A formal marketing campaign for the former Frank Downie House site was undertaken by the Council’s appointed agents between April 2021 and July 2021. ITEM 18
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3.3 At the closing date, three offers were received, ranging from £120,000 to £137,137. The highest offer from Torah Capital was recommended for acceptance at the time as it included the proposed demolition and redevelopment of the site for residential use 3.4 Alongside these bids, a speculative offer of £270,000 was submitted by Glenesk, however, it was highly conditional, reliant on securing funding and various consents, and carried a risk of reducing to a minimum price of £100,000 should conditions not be met. 3.5 Following acceptance of the unconditional offer, the site was sold to Torah Capital but they did not proceed to development. Instead, ownership subsequently transferred in the private market, first from Torah Capital to Glasgow West Development Company, and later to CCG (Scotland) Ltd. These later transactions were not part of the original Council disposal process but form an important part of the site’s recent history. 3.6 CCG (Scotland) Ltd has since progressed significant pre-development work aligned with delivering affordable housing on the site, creating the present opportunity for the Council to acquire the land to support the delivery of new social rented homes in line with strategic housing priorities. Main Issues 4.1 The former Frank Downie House site represents a strategic opportunity to support the delivery of 21 new affordable social rented homes in Clydebank, consistent with the Council’s Housing Emergency Declaration Action Plan. CCG (Scotland) Ltd, as current landowner, has advanced pre-development work including site investigations, remediation strategy confirmation, Scottish Water approvals, planning consent (ref: DC25/144/FUL), and submission of Building Warrant Stage 1 and 2 applications. 4.2 The proposed development constitutes social rented housing that will be owned and managed by the Council through the Housing Revenue Account. The term “affordable housing” in this context refers specifically to new Council homes for social rent, delivered as part of the Strategic Housing Investment Plan approved in November 2025. These units will therefore form part of the Council’s permanent housing stock and contribute directly to meeting local need. 4.3 The proposal will deliver 21 new Council amenity homes which mirrors successful schemes at Creveul Court and Mount Pleasant and provides a mix of wheelchair-accessible ground floor flats, cottage flats and bungalows designed to meet the needs of an ageing population. With planning permission already secured, the Council would acquire the site and progress a design-and-build contract with the current owner, enabling a potential start on site by late Summer 2026.
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4.4 To secure Scottish Government grant funding of £379,000, the site acquisition must be concluded by 31 March 2026. Failure to conclude the purchase by this date will result in the loss of grant and delay the delivery of affordable housing in West Dunbartonshire. 4.5 In line with the approach set out in the Council’s More Homes programme and the Housing Revenue Account Business Plan, a full affordability assessment has been carried out for the Ottawa Crescent project. This includes modelling of long-term rental income, borrowing requirements, management and lifecycle costs, consistent with the methodology applied to all new Council house developments considered by the Housing & Communities Committee. The assessment confirms that the project is affordable within the existing HRA Capital Programme and will deliver a positive financial impact on the HRA from Year 9, which is in keeping with the profile of comparable schemes in the current new-build pipeline. 4.6 Shepherd Chartered Surveyors were commissioned to provide an opinion of Gross Land Value for the site, assuming full planning consent for the proposed 21 affordable units. Their assessment, based on comparable transactions of land acquired by Registered Social Landlords across the wider Glasgow City Region, indicates a gross headline land value of £350,000, equivalent to an average of £16,000 per unit and approximately £580,000 per acre. This valuation assumes a cleared and remediated site with no abnormal development costs applied. 4.7 Shepherd’s valuation also notes limitations in available comparable evidence due to many affordable housing land transactions occurring off-market and elements of build cost and funding information remaining confidential. However, the applied rates of £15,000–£19,000 per unit are considered reflective of current market levels for affordable and mid-market rented housing sites, taking into account the characteristics of the subject site. 4.8 The valuation of £350,000 is lower than the CCG land cost of £379,000; however, CCG has absorbed VAT, Land and Buildings Transaction Tax and pre-development costs and is offering the site to the Council on a no-profit basis. The acquisition price therefore reflects CCG’s actual costs, with full Scottish Government grant funding available to support the transaction, including the difference above the valuation. 4.9 Shepherd’s valuation represents a special valuation prepared solely on the basis of the Council’s instructed use for affordable housing and on an assumption of full planning consent. This, therefore, does not reflect open- market value, which would be significantly lower due to abnormal costs and current market conditions. If the site were exposed to the wider market without an affordable housing planning framework or Scottish Government subsidy, the land value could fall substantially. 4.10 This reflects the broader market reality that private developers cannot make schemes of this nature financially viable without subsidy. Given the acute
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housing shortage, contractors such as CCG are increasingly operating as development partners rather than traditional contractors, taking opportunities aligned to affordable housing delivery. 4.11 In demonstrating best value for the Council several valuation bases could have been applied, open market value, existing use value, value assuming consent for private housing, value assuming consent for affordable value. This valuation was restricted to affordable housing valuation and as a result, the assessed figure represents a best value position for the Council, recognising that land value provided aligns with the specific planning context, Scottish Government funding availability, and CCG’s no-profit disposal at their incurred cost. 5. People Implications 5.1 There are no people implications with this report. 6. Financial and Procurement Implications 6.1 The Council will incur a capital cost of £379,000 to purchase the Ottawa Crescent site from CCG (Scotland) Ltd, representing the cost they incurred in acquiring the land (inclusive of VAT and LBTT) and offered to the Council on a no-profit basis. 6.2 The acquisition cost will be fully met by the Scottish Government grant funding of £379,000, which is conditional upon the purchase concluding by 31 March 2026. There is therefore no net capital cost to the Council, provided the acquisition is completed within the required timescale. 6.3 Following acquisition and development, the Council can anticipate increased long-term revenue through additional Council Tax generated from the 21 new affordable homes. While precise values cannot be confirmed at this stage, the likely annual revenue uplift would be consistent with comparable new build completions and will make a positive contribution to the Council’s overall income base. While there will be a small uplift in Council Tax once the homes are occupied, the primary long-term financial benefit of the development sits with the Housing Revenue Account, through sustained rental income over the life of the new Council homes. This is the standard financial model for all Housing Revenue Account funded new build schemes. 6.4 The independent valuation undertaken by Shepherd Chartered Surveyors assessed the Gross Land Value at £350,000, based on a restricted affordable-housing valuation framework. This valuation supports the position that the acquisition price of £379,000 matched by grant funding represents best value, taking into account planning status, proposed affordable housing use, and the acute housing pressures within the region. 6.5 The procurement of the contract to construct the housing would be let to CCG (Scotland) Limited who are the top ranked contractor on the framework which the Council currently uses for the construction of its social housing.
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Assurances have been provided that there are no cross subsidies arising as a result of this transaction and authority for the letting of this contract has already been obtained through the Housing and Communities Committee on 25 February 2026. 7. Risk Analysis 7.1 There is a risk the acquisition does not proceed if missives cannot be concluded with CCG (Scotland) Ltd within the required timescale. Any delay would jeopardise the drawdown of the £379,000 Scottish Government grant, which must be committed by 31 March 2026, resulting in delaying the delivery of 21 affordable homes and potentially foregoing external funding. 7.2 Should the acquisition not progress, the Council faces wider strategic risks, including increased homelessness pressures, continued reliance on temporary accommodation, and reputational impact given the Housing Emergency context. 7.3 To mitigate these risks, officers will work with CCG (Scotland) Ltd to conclude missives within an accelerated timescale and ensure all grant requirements and due-diligence checks are met without delay. 8. Environmental Sustainability 8.1 Planning permission and Building Warrant approvals have already been secured for the proposed development. Any future construction activity arising from the acquisition will therefore continue to be assessed against relevant environmental legislation and standards, with requirements under SEA and associated planning policy already considered as part of the approved planning process. 9. Equalities Impact Assessment (EIA) 9.1 An Equality Impact Screening did not indicate any further action required in relation to this transaction. 10. Consultation 10.1 Consultations have been undertaken with Finance and Regulatory. As planning permission for the development has already been granted, no further consultation is required at this stage beyond the statutory processes associated with delivery. 11. Strategic Assessment 11.1 The proposed acquisition supports the delivery of the Council’s Strategic Plan by contributing directly to the priority of Our Communities – Resilient and Thriving. The development of 21 new affordable homes will address acute housing pressures, improve access to high-quality accommodation, and support wider community wellbeing.
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11.2 The proposal also aligns with the priority of Our Council – Inclusive and Adaptable, as the acquisition secures full external funding, demonstrates sound financial planning, and enables effective partnership working with external organisations to deliver outcomes that meet community need. 11.3 Acquiring the site in support of affordable housing delivery reflects the Council’s wider commitment to place-based regeneration, reducing inequalities, and ensuring resources are targeted to where they will have the greatest impact in addressing the declared Housing Emergency. Laurence Slavin Chief Officer, Resources Date: 19 March 2026 Person to Contact: Michelle Lynn, Asset Manager T: 01389 776992 Email: michelle.lynn@west-dunbarton.gov.uk Appendices: None Background Papers: None Wards Affected: Ward 6