Purpose

To gain approval for proposed asset rationalisation and disposal of some industrial land in Newham.

Decision

Decision:

For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree to:

i)  The assets listed in Exempt Appendix 1 should be disposed of, provided a suitable price can be obtained.

ii)  Delegate authority to Corporate Director of Resources, in consultation with the Lead Member for Finance and Corporate Services and the Director of Property to finalise the terms of the disposals set out in Exempt Appendix 1 in accordance with the terms set out Appendix 2.

iii)  Delegate to the Corporate Director of Resources, in consultation with the Lead Member for Finance and Corporate Services and the Director of Property authority to agree any non-material amendments as may be necessary to achieve suitable sales, including delegation to agree the price in accordance with paragraph 4.7 and to take all necessary actions to complete the freehold transfers, together with any necessary ancillary agreements.

iv)  Note that further due diligence will be carried out on other assets within the Council’s portfolio, with a subsequent report to be presented to Cabinet ahead of any potential sales.

v)  Approve the setting of a disposals budget as set out at Paragraph 4.8.

vi)  Delegate authority to the Corporate Director of Resources, in consultation with the Lead Member for Finance and Corporate Services, to approve any necessary procurement processes and to award of contract or contracts for legal and professional services to progress the relevant sales and as set out in section 4.

vii)  Note the methodology to be taken on disposals as set in Exempt Appendix 2.

Alternatives Considered

a)  The proposed prioritisation of sales is based primarily on financial considerations, i.e. the income that would be lost compared with the capital receipt likely to be generated. An alternative approach would be to prioritise sales based on alternative criteria. This may include prioritising assets located outside of the borough or assets of a certain type e.g. retail or industrial premises. Such approaches would result in a lower financial benefit but would be more aligned to retaining a degree of influence over local economic activities.

b)  This alternative is realistic and very reasonable alternative to the approach in this report and should be given consideration in reaching a decision. However, the scale of sales proposed is insignificant compared to the Council’s total property holdings as reported to the February Cabinet and any future, more substantial, transactions will only be considered after the wider property strategy has been agreed.