Thu Oct 17, 2019 3:36 pm
Councillors were told it brings in a "substantial sum" for the authority
A deal to purchase a retail site occupied by B&M has been given the green light by councillors at Coventry City Council.
The authority is to acquire the plot on Ansty Road at “market value”, it has said.
The site consists of 31,000 sq ft of retail space with some 160 car parking spaces and is under lease by bargain chain B&M for the next 10 years.
The council already owns just under 50 per cent of the site which is let out on two ground leases but purchase of the full site gives a “substantial sum to the council” based on a 6.7 per cent return, cabinet member for jobs and regeneration Councillor Jim O’Boyle said.
Speaking as the deal was given unanimous backing at full council on Tuesday, October 15, he added: “At the moment it actually brings in 6 pence a year because of the freehold we have.
“This decision will bring us in a far greater return and will be working for us and the taxpayer and start bringing in money for the taxpayer.”
As well as bringing in an annual rent, purchase of the site gives the council full ownership of the freehold and the location provides an opportunity to redevelop the land in the future, Cllr O’Boyle added.
Exact details of the price the council has paid for the site and the returns are contained in private council reports.
Vendors have already agreed to the terms of the purchase, provided sale is completed before October 30.
Thu Oct 17, 2019 6:02 pm
“At the moment it actually brings in 6 pence a year because of the freehold we have.
Thu Oct 17, 2019 6:54 pm