Purpose

Wilson Street car park is a council owned
property which is let to Pediment Investments Ltd who are a small
private property company. The property was let for a term of 125
years from 4.11.1983 (84 years unexpired) at an initial rent of
£2,300pa. The rent is subject to five yearly review and at
the last completed review in 2018 the rent was increased from
£4,300pa to at £5,887 pa. The site area is 0.1 acre and
the site is used as car parking for the adjacent residential block
which is owned freehold by Pediment Investments Ltd .
A sale is recommended for the following reasons:
- The wording of the rent review clause limits the scope for future
significant rental growth over the next 84 years.
- The price includes an overbid to reflect the fact that the tenant
is a special purchaser as they are both the tenant and the
adjoining owner. A special purchaser is a particular buyer for whom
a particular asset has a special value because of advantages
arising from its ownership that would not be available to other
buyers in a market.
- The price also reflects the potential development value of the
land in conjunction with the tenants’ adjoining
property.
- The Council has responsibility for repair of a rear boundary wall
and this future cost and liability would be removed by the sale of
the land.
- The land could not be used by the Council for any alternative use
for the next 84 years, due to the existing lease to Pediment.

Content

The council’s freehold property (Wilson
Street car park) is sold to Pediment Investments Ltd for
£250,000.