Issue - meetings

Reporting Person – Kevin Foster

The Executive received a report which sought approval for the Council to accept a surrender from McLaren of its occupational leasehold interest in Victoria Gate, Chobham Road, for a payment to the Council.  In addition, approval was sought for a simultaneous sale of the Council’s Freehold interest in Victoria Gate with full vacant possession to Surrey County Council (SCC).  The Executive was advised that payments exceeded the open market value and represented the beginning of an asset rationalisation programme.  It was noted that SCC proposed to transfer some 600 staff to the building which would generate additional Town centre footfall and spending.  It was highlighted that the Council had secured an option to occupy the 4^th and part of the 5^th floors of Victoria Gate, subject to it being a cost effective solution following a review of the Civic Town Centre Campus.  Following a question regarding timescales for the transaction, Officers reported that it was achievable within the next month if all parties were willing and motivated.

The Executive was supportive of the proposal and thanked Officers for working on the transaction, noting that the Town Centre remained economically strong.

RESOLVEd

That the Council agrees to accept a surrender of the occupational leasehold interest with a simultaneous sale of the freehold interest within Victoria Gate.

Reason:   The combined disposal and lease surrender receipts will generate a return that exceeds the recent market sale valuations of Victoria Gate as either a standing investment or with full vacant possession.