Purpose

The Council owns the freehold interest in the site, subject to an existing long leasehold interest. The site has remained underutilised for a number of years and a formal marketing exercise confirmed interest from prospective purchasers and informed subsequent discussions and negotiations regarding its disposal.

Separately, discussions and negotiations have progressed with the existing long leaseholder regarding the potential surrender of the existing long leasehold interest. The proposed surrender would simplify the Council’s land ownership position and facilitate the subsequent sale and redevelopment of the site.

On 19 May 2025 Strategy and Resource Committee (in exempt session) delegated authority to the Executive Director for Growth and Regeneration in consultation with the Executive Director of Resources (s151 Officer) and the Committee Chair to approve the conditional sale of the site to the highest bidder and to agree terms for the surrender of the existing long leasehold interest.

Following the withdrawal of the highest bidder, an Urgent Key Decision was subsequently taken under the delegation of the Executive Director of Growth and Regeneration and Chief Executive in consultation with the Monitoring Officer, Executive Director of Resources (s151 Officer) and Committee Chair to approve the conditional sale of the site to the underbidder, alongside the surrender. Both decisions were taken as exempt decisions due to the commercially sensitive nature of the information and negotiations involved.

The transaction will generate a capital receipt for the Council and support the delivery of its Corpoate Strategy.

Decision

Approval for the surrender of the existing long leasehold interest and following completion of the surrender, the sale of the Council’s freehold interest, subject to completion of all necessary legal documentation and satisfaction of the agreed conditions.

Alternative options considered

The Council could retain ownership of the site and continue the existing leasing arrangement. This option was
rejected as the existing arrangement would continue to constrain the redevelopment and future use of the site. The opportunity to secure a capital receipt and realise the wider economic and investment benefits associated with the proposed redevelopment was considered to outweigh the benefits of retaining the existing income.

Alternatively, the Council could dispose of its freehold interest while leaving the existing long leasehold interest in place. This option was rejected because the continued existence of the leasehold interest would constrain the potential redevelopment and sale of the site and could adversely affect the attractiveness and value of the freehold interest to prospective purchasers.