Councillor Adrian Jones introduced a report by the Head of Universal and Infrastructure Services that sought authority to dispose of the freehold interest of three industrial units on Tarran Way West, Tarran Industrial Estate, Moreton to the current lessee.

The Cabinet was informed that units 1 to 3 Tarran Way West comprised of three 2,000 sq ft interconnecting industrial units on the Tarran Industrial Estate, Moreton.  The three units were held on a nine year lease from 1 February 2007 to M Rogers trading as A1 Autocare at an annual rent of £28,500 per annum.  Under the terms of the lease, the tenant was responsible for all internal and external repairs and insuring the units.  The lease included a break clause to enable the tenant to terminate the lease on serving six months notice at any time.  M Rogers had been a tenant of unit 1 since 1993.

The lessee had enquired about purchasing the freehold interest of the three industrial units.  Negotiations had taken place and a figure of £270,000 plus fees had provisionally been agreed for the freehold.  These were the only industrial units on the Tarran Industrial Estate owned by the Council although approximately one quarter of the estate was owned by it on 99 year ground leases.  The Cabinet was told that if the Council retained the units there was a risk the tenant could serve six months notice to terminate the lease and the Council could be left with three vacant industrial units.  Due to the layout of the communal access road, units and rear yard, the units could be difficult to re-let individually.

RESOLVED:

That the freehold of Units 1-3 Tarran Way West, Tarran Industrial Estate, Moreton be sold on the terms set out in the report.