Decision details

To acquire the long leasehold interest on the basis of an agreed price of £1,550,000

To approve the purchase of land and/or buildings at 6-8 Midleton Road, a freehold already owned by the Council. The proposed acquisition of the last remaining long leasehold interest on Midleton Road will allow the Council to take full strategic control of Midleton industrial estate for land assembly and regeneration purposes.

The proposed purchase has been assessed and passes the strategic and financial criteria set out in the Commercial Property Investment strategy 2020/21-2024/25.

The Council owns the freehold of Midleton Industrial estate, the long leases were sold off in the 1960/70 and developed, the leases are winding down and buildings are end of life. The Council as freeholder has been executing a regeneration plan to redevelop the industrial estate to modern standards to broaden the economic activity on the estate. This involves purchasing this site as land assembly and hold as tenanted units until the latest 2031 when the leases expire. The intention is to work with the current tenants to exit the site via relocation and redevelop as soon as possible. The outcome is to generate significant additional activity and create jobs that would not otherwise happen without the Council’s intervention. Income from the leases will cover borrowing costs include void mitigation on the wider redevelopment.

The decision meets the policy requirements for the Council and there were no alternative options available.