On 27 April 2023 the Council’s Policy and Resources Committee considered a report relating to a Strategic Acquisition. The report contained exempt information as defined in paragraph 3 of Schedule 12A of the Local Government Act 1972.

It was considered in the public interest to exclude the press and public as the report and appendices contained ‘Information relating to the financial or business affairs of any particular person (including the authority holding the information)’ during the consideration by Committee of the report and its appendices. Policy and Resources Committee resolved [amongst other matters] to approve:

·  the acquisition of the Pyramids and Grange Shopping Centres from the Mars Pension Fund Trustees [a plan of which is set a in Appendix 1 to this report];

·  that the acquisition be financed by funding via the Public Works Loan Board;

·  that the Director of Law and Governance, in consultation with the Director of Regeneration and Place, be authorised to negotiate and finalise the associated legal documentation for the acquisition of the Pyramids and Grange Shopping Centres;

·  the appointment of Jones Lang LaSalle Property Limited (JLL) to fulfil day to day property and asset management functions for the two centres including asset management, rent collection, service charge administration, proactive and reactive repairs, security electrical testing and litter collection for a minimum period of 6 months from the date of acquisition; and

·  the appointment of Barker Proudlove Ltd and Emanual Oliver Ltd as letting agents for the shopping centre.

The Director of Law and Governance is content to proceed with the purchase within the terms of the authority to given to  them by Policy and Resources Committee.

Terms have been agreed to for the associated appointment of Jones Lang LaSalle Property Limited (JLL) to fulfil day to day property and asset management functions for the two centres and Barker Proudlove Limited and Emanuel Oliver Ltd to carry out letting agency functions.  Such appointment will enable there to be continuity given that JLL were already acting as the property manager for Mars Pension Fund on the property. The appointment of Barker Proudlove Limited and Emanuel Oliver Ltd provides continuity as this is the same arrangement that was entered into by Mars Pension Fund.  The appointment of JLL, Barker Proudlove Ltd and Emmanuel Oliver Ltd, each for a term of 12 months will enable the Council to establish a procurement process to enable firms to bid for such work on or about the anniversary of the purchase of the shopping centres.

Arrangements have been made for the Council’s responsibilities as landlord to be subject to the usual public liability insurance policy.

Resolved – that the Director of Law and Governance has approved:

(1)  the acquisition of the Pyramids and the Grange, Birkenhead from the property owner, Mars Pension Fund Trustees;

(2)  the appointment of Jones Lang LaSalle Property Limited (JLL) to fulfil day to day property management function for the two centres including asset management, rent collection, service charge administration, proactive and reactive repairs and maintenance, security maintenance electrical testing and litter collection for a period of 12 months from the date of acquisition; and 

(3)   the appointment of Barker Proudlove Limited and Emanuel Oliver Ltd as letting agents for the shopping centres for a period of 12 months.

The Pyramids/Grange Shopping centre is the primary retail core of Birkenhead. It has been in a state of decline since 2017 with the growth of online retailing and more recently the Covid pandemic. Approximately one-third of the centre (by income) is vacant. The Council’s actions in respect of seeking to regenerate Birkenhead town centre are aimed at activation of the high street to stimulate new retail, leisure and other commercial uses to encourage investment and spend in the local economy.

Following completion of the 2 new offices, comprising Phase 1 of the Birkenhead Commercial District, and re-location of the market, the Council will seek to re develop the former market site and other Council owed assets which may be compromised without ownership of the Pyramids/Grange. For example, the service yard to the Grange shops creates a barrier to redevelopment of the former market site.

The centre operates 2 multi storey car parks providing 1,180 car park spaces. Conway Street car park is under used with Mars having allowed only one floor to be accessed by those wishing to park. As the Council will be occupying Block A of the Birkenhead Commercial District Phase 1 office in Spring 2024, better controlling the use of these car parks, will support Council staff and member parking. Parking will add value to the new office buildings with a view to securing additional public and private sector occupiers to increase revenue for the Council

Further background information was  set out in the corresponding section of the exempt report to Policy and Resources Committee of 27 April 2023. As of 3 May 2023, the parties to the proposed transaction were in a position to proceed with the purchase of the property by the Council

To not purchase the property. This has been discounted as there has no change in circumstances between the decision by Committee and the proposed completion date.