Issue - meetings

(Paragraph 3 – information relating to financial/business affairs of a particular person).

Purpose: 

·       To create a new lease for the remaining unlet areas of the building. The lease will be for 10 years (with a tenant option to break at 5 years). WBC Property Investment Board has seen and agreed this proposal.

Resolved that the recommendations in the exempt report be approved.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 23^rd December 2023, then it will be implemented.

(Paragraph 3 – Information relating to financial/business affairs of particular person)

The Executive considered an exempt report (Agenda Item 13) concerning the grant of a lease for 4 The Sector.

RESOLVED that:  the recommendations) in the exempt report be agreed (as detailed at item 58).

Other options considered: To decline the proposed lease and continue to market the vacant property on the basis of letting the space at a higher rent in the future and with an Open Market Review at the end of year 5. Officers considered leaving the building part vacant was too high a risk to the council. The office market is challenging at present given the fall-out from Covid and so it is difficult to predict how long the building would remain partially vacant.

To dispose of the freehold, removing the property from the portfolio. This option is available but the council will find itself in a similar situation to the previous vendor in needing to offer incentive through escrow rent repayments of a reduced value. The market has also been impacted since the purchase in 2018 by both Brexit and more recently Covid 19.