Purpose

To gain approval for proposed property
disposals

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 paragraph 4.8.
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) 
Another approach would be to prioritise the sale of freehold
interests where the Council has previously sold a long lease. In
such cases, the Council has little influence of the use of a
property and is unable to actively promote its redevelopment or
improvement until the lease ends. This is typically at least 30
years away and often much longer. Similarly, the leaseholder has
little incentive to invest in the property as it does not have
long-term ownership. Selling its freehold interest would normally
remove such barriers to development.

c) 
Both alternatives are realistic and very reasonable alternatives to
the approach in this report and should be given consideration in
reaching. a decision. However, as stated in paragraph 4.5, the
scale of sales proposed is insignificant compared to the
Council’s total property holdings and any future, more
substantial, transactions will only be considered after the wider
property strategy has been agreed.