Spelthorne in further multi-million property swoop
Spelthorne District Council is set to buy an office block in central London for around £170m, according to reports. Property publication Estates Gazette said that the purchase of the Hammersmith office block would produce a 5.25% yield for the authority. Spelthorne’s £360m purchase of the BP campus in Sunbury in 2016 is believed to be the biggest commercial property deal ever completed by a local authority.
LPP to create new property vehicle
The Local Pensions Partnership LGPS pool, set up by Lancashire County Pension fund and London Pensions Fund Authority, is creating a new vehicle to hold property assets. The new vehicle will combine LCP’s £600m national portfolio and LPFA’s £150m core portfolio, as well as making new acquisitions. The vehicle will target a return of 4-6% a year and hold UK property across the retail, office, industrial and “alternative” sectors. A £60m portfolio of property in Lancashire held by LCP will remain outside the new vehicle.
Aylesbury Vale standalone company to sell assets
A standalone telecommunications company set up and owned by Aylesbury Vale District Council has sold all of its assets to a rival. The company, Aylesbury Vale Broadband was created in 2015 with a £700,000 loan from the authority, which owns a 95% stake. It will now sell all assets to rival Gigaclear. Janet Blake, AVB Board member and Aylesbury Vale councillor, said: “Having stimulated the market, the time is right to pass the reins on to a company with the resources to grow the network and benefit many more residents and businesses.”
M&S legally bound to retail scheme, claims Rochdale
Rochdale Borough Council says that it expects Marks & Spencer to keep to an agreement that it will anchor a new retail and leisure development in the town. In November, the retailer said that it intended to pull out of the £80m Rochdale Riverside scheme due to changing customer habits. However, following a meeting last week, council leader Allen Brett said: “As far as we’re concerned, M&S have signed a legally binding contract to take space in the Rochdale Riverside development and we fully expect them to honour that commitment. We’re not going to let this issue derail what will be a fantastic development for the people of our borough.”
Liverpool on verge of Everton stadium funding deal
The city council in Liverpool is set to act as guarantor for two thirds of the cost of a £450m new stadium for Everton Football Club. Liverpool mayor Joe Anderson said that negotiations on the deal have been wrapped up, but still require due diligence and council approval. He said: “Liverpool City Council will benefit hugely from the investment we make and the financial return that we get and that’s where the fight against austerity comes in, because the benefit we receive as a city council enables me to pay for services like social services, keeping Sure Start and libraries open and it’s that type of innovation, and that type of invest-to-earn and invest-to-save that means we’re proud to enter in that deal with Everton Football Club.”
Shropshire set to lose 200 jobs
Shropshire Council is set to shed 200 jobs and raise council tax by 5.99% in order to balance its budget. Council leader Peter Nutting was quoted in local newspaper the Shropshire Star as saying the job losses would come through retirement, natural wastage and voluntary redundancy. The council is also spending £20m on a new computer system to help it cope with the losses. Opposition councillors are not planning to oppose the council’s proposals.
