Decision

The Director of Capital Programmes and Assets has approved

1. the surrender of the lease of 27 Princes Pavement, Birkenhead, currently held by Cash Converters (UK) Stores Ltd (“Cash Converters”)
2. the grant of a lease of 21 Borough Pavement, Birkenhead on commercial terms accompanied by a landlord capital contribution (paid by the Council) to Cash Converters (UK) Stores Ltd as set out in the exempt appendix 1.

Reasons for the decision

Cash Converters (UK) Stores Ltd (“the tenant”) currently occupies 27 Princes Pavement a unit in a row of shops which are adjacent to the former House of Fraser site.  The retail units will need to be demolished to allow the regeneration project for the adjacent site to proceed.  All other units in the row are currently vacant with the exception of one other unit which there is facility to enable possession by the Council, therefore the lease of 27 Princes Pavement is the only remaining impediment to obtaining vacant possession of the row of shops for redevelopment.

As the tenant occupies on a lease which contains the security of tenure provisions of the Landlord & Tenant Act 1954 Part II, the tenant has a statutory right to renew the lease of its existing premises now that it has reached contractual expiry. Therefore, negotiations have taken place and terms have been agreed to enable the tenant to take a new lease of an alternative vacant unit in The Grange Shopping Centre without the need for the Council to serve formal Notices on the tenant under section 25 of the Landlord & Tenant Act 1954.  In accordance with market practice a landlord (Council) capital contribution has been agreed as a contribution towards the costs of the tenant’s fitting out works in the new unit for the tenant’s benefit. 

The tenant will be granted a new lease for the new unit on commercial terms and their existing lease will be surrendered within 6 weeks of the new lease commencing. 

The granting of the new lease will retain the tenant within the Shopping Centre which will protect rental income for the Council.  It will also protect levels of occupancy and footfall in the town centre, which is supportive of the Council’s goal to help regenerate Birkenhead town centre and encourage spend in the local economy.

The detailed terms of the arrangement which is subject of this decision is set out in the exempt Appendix 1.

Appendix 1 contains exempt information as defined in Schedule 12A of the Local Government Act 1972.  It is in the public interest to exclude the press and public under Paragraph 3 ‘Information relating to the financial or business affairs of any particular person (including the authority holding the information)’.

Alternative options considered

One alternative option is to ‘do nothing’ – in this scenario the tenant may decide to leave Birkenhead town centre which will result in reduced rental income, increased void costs and reduced footfall. 

Other alternative options are set out in exempt Appendix 2. 

Appendix 2 contains exempt information as defined in Schedule 12A of the Local Government Act 1972.  It is in the public interest to exclude the press and public under Paragraph 3 ‘Information relating to the financial or business affairs of any particular person (including the authority holding the information)’.