Decision Maker: Finance and Performance Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 19, 2026

Purpose:

Content: 9.1 The Senior Land and Property Surveyor introduced the report which proposed to sell the Sheffield City Council’s freehold interest in the land at Blonk Street to the current leaseholder to enable further investment in the property. The report sought approval of the Finance and Performance Policy Committee to dispose of the land.     9.2 RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee:-   a)    Approve the freehold sale of land at Blonk Street on the terms set out in Appendix 1. b)    Authorise the Chief Property Officer to finalise the terms of the sale.     9.3 Reasons for Decision     9.3.1 The recommended disposal of the Council’s freehold interest offers a clear and balanced set of benefits for the Council and the City, as follows:   ·       The disposal will facilitate private sector investment in the property, improving its condition and long-term sustainability, and supporting regeneration and economic activity in the surrounding area. ·       It enables the Council to secure a capital receipt from a non-operational asset, contributing directly to the Council’s capital programme and supporting delivery of wider corporate priorities. ·       The transaction will remove ongoing management responsibilities associated with holding the freehold interest, allowing the Council to focus resources on assets that directly support service delivery. ·       The proposed private treaty sale to the existing leaseholder represents best consideration reasonably obtainable, as confirmed by specialist valuation advice, and provides the best possible chance of completion within this financial year. Completion within this financial year is essential to secure the anticipated capital receipt, support budgetary targets, and enable timely reinvestment in priority regeneration projects. ·       The recommendation aligns with the Council’s Asset Management Strategy, City Goals, and triple policy drivers (People, Prosperity, and Planet) by promoting sustainable growth, inclusive prosperity, and environmental responsibility.     9.3.2 For these reasons, the proposed disposal is considered to represent the most advantageous option for the Council in financial, operational, and strategic terms.     9.4 Alternatives Considered and Rejected     9.4.1 Do Nothing   The Council could retain the freehold interest and continue to manage it alongside the existing long lease. This would maintain the status quo but would not generate any capital receipt, remove ongoing management responsibilities, or enable the leaseholder to invest in the property. Retaining the asset in its current form represents a missed opportunity to facilitate regeneration and private sector investment and secure a capital receipt.     9.4.2 Extend or renegotiate the existing lease.   Another option would be to negotiate an extension of the current lease or revise the lease terms to capture additional income or secure greater investment obligations from the leaseholder. While this could provide some additional revenue, it would not deliver the same certainty of a substantial capital receipt and would leave the Council responsible for ongoing management of the lease. It would not provide the leaseholder with full control to justify significant investment in the building.     9.4.3 Open market sale   The Council could seek to sell the freehold interest on the open market to third parties. While this may have the potential to test market value, it could lead to uncertainty, delays, or sale to a purchaser with no intention of investing in the building or contributing to the regeneration of the area. A competitive process could also disrupt the existing tenant’s operation and reduce the overall attractiveness of the opportunity to the leaseholder, potentially reducing the capital receipt.