Decision Maker: Cabinet Member for Finance and Smart City
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Renewal of lease to Tesco at Church
The Cabinet Member is recommended to approve the grant of the proposed New Lease and gives delegated authority to the Director of Property and Strategic Asset Management to agree minor variations to the terms to enable the agreed final form of legal documentation to be executed and completed.
2. Reasons for Decision
The key reasons and rationale for supporting this decision are as follows:
(1) The grant of a New Lease will enhance the income stream from the subject investment property and represents best value for the Council when considered alongside prevailing market levels and the need to retain flexibility in obtaining vacant possession from 2030 onwards.
(2) The proposed length of the term under the lease has regard to the fact that the subject property sites within Site C of the Church Street regeneration proposals where the current earliest desired vacant possession date is 1st January 2030.
(3) A flexible rolling Landlord’s re-development break clause, operable from 1st January 2030 will be contained with the New Lease
(4) Negotiations on behalf of the Council have been undertaken by Avison Young with regarding to current market evidence in terms of prevailing rental values, also having regard to the provisions and statutory process contained with the Landlord & Tenant Act 1954 which apply in this case.
Publication date: 13/12/2021
Date of decision: 13/12/2021
Effective from: 21/12/2021