Decision

To approve Durham County Council entering into a Property Management Agreement with Savills UK Limited for The Newgate Centre, Bishop Auckland, and to authorise the appropriate officer(s)

to execute the agreement on behalf of the Council. The agreement formalises Savills UK Limited as property manager with effect from 1 June 2026 for a term of 12 months. The principal fees are a management fee of £28,000 per annum, £150 per lease per annum for rent collection, and an £8,000 set-up fee. The agreement may be terminated by giving three months’ written notice.

Options considered: The report records that a replacement property manager was required following termination of the previous manager’s appointment with effect from 31 May 2026. An internal procurement process was completed and Savills UK Limited was selected as the preferred provider. The decision is therefore to formalise the appointment through execution of the Property Management

Agreement.

Reasons: Savills UK Limited commenced property management services on 1 June 2026, ensuring continuity of management. The agreement provides the contractual framework for day-to-day management, tenant and contractor liaison, service charge administration, and oversight of the operation and upkeep of the Centre. Savills UK Limited is also acting as the Council’s agent for the proposed disposal, providing continuity of property knowledge and supporting due diligence and purchaser handover. Durham County Council Legal Services reviewed and approved the proposed agreement, and the report confirms that the relevant procurement process and internal approvals were completed.