Decision details

To consider the report of the Cabinet Member for Economic Development seeking approval for the splitting of the Council owned unit at 271 Winchester Road to create two units, after which to grant two new leases.

(i)  To approve the splitting of the unit at 271 Winchester Road into two units as outlined in the commercial and financial terms in Appendix 1.

(ii)  To delegate finalising the detail of the terms of the splitting of the Unit and the Lease to the Executive Director of Growth and Prosperity following consultation with the Executive Director for Enabling Services and the Director of Legal and Governance.

(iii)  To delegate approval for any other matters necessary to finalise this transaction in association with this proposal to the Executive Director of Growth and Prosperity following consultation with the Executive Director for Enabling Services and the Director of Legal and Governance.

(iv)  Subject to any proposal falling within Cabinets financial authority, to  delegate approval to dispose of this property in the future to the Executive Director of Growth and Prosperity following consultation with the Executive Director for Enabling Services and the Director of Legal and Governance (if best consideration can be demonstrated for a disposal compared to retention of the property).

The unit at 271 Winchester Road which is part of the Councils investment portfolio would be more desirable for future lettings if it was split in two.  The recommended approach outlined in this report (see Appendix 1) and the Appendices enables the splitting of the unit through the agreement of a lease rather than requiring the Council to fund these works from its own capital budget.

The proposal offers the City Council an opportunity to be able to improve the physical condition of a property, reconfigure the current layout, which is not compatible with market demands with two tenants that offer strong covenants.

The alternative options are set out in Appendix 1 of the report.