Nottingham City Council has commissioned an external review of 29 properties it owns across the UK with the aim of selling off some to generate cash.
In July, the authority said it wanted to make £100m from the sale of under-used land and buildings over a three-year period.
Councillors will discuss the disposal of one of the properties it owns in Garretts Green in Birmingham at an Executive Board meeting on Tuesday, 21 December. It has not disclosed what the property is being used for.
The report states: “The council has commissioned an external review of its new investment assets, which is a portfolio of 29 properties located throughout the UK.
“The review has been undertaken by an appointed specialist investment agent with knowledge of the asset types and locations.
“The review has resulted in a recommendation to sell a number of the assets, with the first priority sale being the subject property.
“The subject property is held on a long lease and the freehold owner has approached the council’s agent with an offer to purchase the long leasehold interest.
“The offer is over the market value and is an off-market purchase.
“The sale will remove considerable risk that the council faces from the sub-tenant exercising their break in order to renegotiate the rent downwards, and there is also the risk that the tenant will vacate the property, which will leave the council with significant void holding and re-letting costs.”
The council says the sale will generate “a significant capital receipt” but the sale amount has not being disclosed.
The authority is currently being monitored by Government-appointed inspectors as it bids to stabilise its finances.
An Improvement and Assurance Board has been set up reporting back to Government on the council’s progress in achieving ‘financial resilience’.
If the council fails to show marked improvements, then government commissioners could run the authority in the future. In total, the council needs to save around £38m over a four-year period.
