Decision details

The Cabinet considered the report circulated with the agenda. Mrs Keegan introduced the report. The report proposed that, subject to due diligence, the Council should acquire a retail property in Chichester (with accommodation above to be leased back to the vendor) with a net return on investment that exceeded the bank deposit rate.

Mr Regan (Senior Estates Surveyor) reported on the heads of terms that had been agreed, subject to due diligence. The Cabinet discussed the terms, including the lease back of the upper floors, the expected return on investment, and the risks in terms of capital value and rental income.

RESOLVED

That the purchase of the investment described in this report be authorised, subject to approval of the recommendation below, and that the Head of Commercial Services be authorised, after consultation with the Cabinet Member for Commercial Services, to approve the final terms of this acquisition following completion of due diligence investigations.

RECOMMENDED TO COUNCIL

That £1,010,000 be allocated from reserves for this purchase.