Decision details

Recommendations 

The Cabinet Member for Finance and Smart City has approved: 

1.              the surrender of the existinghead-lease of 90-104 Berwick Street and the payment of monies up to £10.888million (net of VAT and insurance premium tax);  

2.              the simultaneous grant of the Retail Lease to BSS;and  

3.              the subsequent assignment of the Retail Lease by BSS to SSL and the entry by the Council into a necessary deed of covenant.  

Reasons for Decision 

Under the existing head-leasethe Council receives a net rent equivalent to 54.5% of the commercial income derived from the Property,which includes 11 vacant retail units.  The total income currently received totals £1 million per annum.   

Following the proposed surrender and grant of a new head-lease, the Council’s income will be solely derived from the letting of a new hotel within the re-development to Whitbread/Premier Inn.  This is currently the sum of £2 million with uplifts linked to the consumer price index in 2026 and every 5 years thereafter.