Decision details

Purpose of Report: The report will set out options to dispose of the freehold interest in 2 poorly performing freehold interests currently held in the Council’s commercial portfolio (Stonebow House and 10-12 Redeness St) and to invest in the purchase of the leasehold interests of 2 properties with a better financial yield.

The disposal of the freehold interests will, subject to planning, enable redevelopment of underused assets. The purchase of the leasehold interests will generate an increased revenue income and secure potential future development opportunities. 

This report has been deferred to the October Executive meeting to allow Officers time to examine further options for changes to the Council’s commercial portfolio.

Resolved: That Executive agree to:

(i)           Dispose of the freehold interest of Stonebow House and grant a long leasehold to Oakgate PLC on the small area of land identified in Annex 1 for a total price of £750,000; 

(ii)          Dispose of the freehold interest of 10 and 11 Redeness Street to Maple Grove Developments for £256,500;

(iii)        The purchase of the leasehold of sites 36 and 23  Hospital Fields Road for sums set out in the Confidential Annex 1, with delegated authority to the Director of Place to make the final purchase decision based on the outcome of surveys.

Reason:     (i)      To allow the redevelopment of Stonebow House to proceed, bringing back in to use and renovating a vacant run down building whilst achieving a significant capital receipt from a poorly performing commercial asset.

          (ii)      To dispose of a poorly performing asset.

(iii)     To increase the revenue income of the  commercial portfolio and create potential future development opportunities.