Purpose

The Council had recently acquired the Ladysmith Shopping Centre and proposed to continue to operate it as a successful shopping centre to maximise its rental income.

The Council had retained the incumbent letting agents to continue letting the units, to maximise the revenue for the Centre.

Decision

The proposed heads of terms for the lease renewals for units 15, 18 and 24-24A Staveleigh Mall and Unit 10 Mercian Mall in the Ladysmith Centre as detailed in the confidential appendices be approved so that the leases can be completed. 

Reasons for the decision

The Council has recently acquired the Ladysmith Centre Shopping Centre, as part of the Ashton Mayoral Development Zone, Ashton Town Centre Vision and Spatial Framework, which will deliver growth and implement the objectives of the Tameside Inclusive Growth Strategy 2021-26, and which received Cabinet approval on 27 March 2026.  The scheme extends to 190,394 sq ft and comprises 56 retail units, most of which are fully let on market terms.  As at the date of acquisition, by the Council, (the 18 May 2026) 6 of the units were subject to lease renewals or new lettings, or lease assignments for which formal Council Governance is required to progress.

The proposed lease renewals for units 15, 18 and 24-24A Staveleigh Mall and Unit 10, Mercian Mall in the Ladysmith Centre all now have heads of terms agreed for new leases approval is requested to complete these four lease re-newals.

Alternative options considered

To reject the application for the new lease, but that would result in void service charges and void rates charges attributable to the Council at a considerable cost.