Slough Borough Council, currently under government intervention, has sold a portion of its assets for over £115m to help reduce its borrowing debt of £760m.
The authority announced the sale of a warehouse unit in Bradford and an industrial site on Wexham Rd, Slough, which were sold for £14.48m and more than £100m respectively. This puts Slough on track to meet its target of £200m asset sales for the current financial year.
Asset sales are part of the government intervention in Slough following the financial collapse of the council, which led Steven Mair, director of finance, to issue a section 114 notice in July 2021.
The sale of the warehouse unit in Bradford marked the start of the series of asset disposals. A cinema in Basingstoke and a hardware store in Wolverhampton will also be sold soon.
It has been widely reported that we need to sell assets totalling hundreds of millions of pounds; this sale goes a significant way to meeting that target and stabilising the council’s financial position for the future.
Financial recovery
Rob Anderson, lead member for financial oversight and council assets, said: “I am delighted this first sale has completed, with the other sales we are transacting, as these support the council’s financial recovery by producing significant capital receipts and reducing our borrowing and debt charges.”
In May 2022, government commissioners told the council that it would need to sell £600m worth of property assets to ensure its future financial sustainability. This is half of Slough’s total assets worth £1.2bn.
Commenting on the sale of the industrial land, Anderson added: “Originally, we bought this site with the vision of creating housing, however despite this original vision not being practical in reality, this site has proven to be a very good investment.
“It has been widely reported that we need to sell assets totalling hundreds of millions of pounds; this sale goes a significant way to meeting that target and stabilising the council’s financial position for the future.”
Slough Borough Council bought the industrial site, a former AkzoNobel paint factory, from international real estate company Panattoni for £38m in a bid to build new affordable housing.
James Swindlehurst, leader of Slough Borough Council, said: “The large-scale profit on the sale of this asset – made in little over a year – reflects the strong growth in demand for sites that can meet data-centre, logistics and distribution uses.
“The proceeds from this sale alone will significantly assist the council in its financial recovery.”
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