Item 15 - Sale of WDC Ground lease interest at 578 Glasgow Road
West Dunbartonshire Council · 22 May 2024
Back to Infrastructure, Regeneration & Economic Development Committee — 22 May 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Resources Infrastructure Regeneration and Economic Development Committee: 22 May 2024 ___________________________________________________________________ Subject: Sale of the Council’s Ground Lease interest at 578 Glasgow Road, Clydebank G81 1NH 1. Purpose 1.1 The purpose of this report is to seek Committee approval for West Dunbartonshire Council (the Council) to dispose of the Council’s ground lease interest at 578 Glasgow Road, Clydebank (the Land) to Condie Investments Ltd. 2. Recommendations 2.1 It is recommended that the Committee: (i) Approves the sale of the Land to Condie Investments Ltd for the price of £138,000. (ii) Authorises the Chief Officer Resources to conclude negotiations. (iii) Authorises the Chief Officer Regulatory and Regeneration to conclude the transaction on such conditions as considered appropriate. 3. Background 3.1 The ground is subject to a 99 year ground lease between the Council and Condie Investments Limited, from 26 August 1971 to 25 August 2070 (approximately 46 years unexpired) at a current ground rent of £8,400 per annum. 4. Main Issues 4.1 The Land is located to eastern edge of Clydebank, close to the boundary with Glasgow City southern with frontage to Glasgow Road/A814, at its junction with Dock Street. 4.3 The ground predominantly comprises a single storey, commercial premise with external surfaced customer parking. The current occupational tenant is J&W Carpets. 4.4 The Council has no relationship with the tenant J&W Carpets or any other commercial occupier/tenant of the premises, other than providing landlord ITEM 15
Page 2
consent when required. The occupier’s contractual relationship lies solely with Condie Investments Ltd via an occupational lease. 4.5 The Council were approached by Condie Investments Ltd to purchase the remaining ground lease interest. 4.6 Following this approach the value of the remaining ground lease was assessed and £138,000 was deemed to be appropriate and demonstrated best value. 5. People Implications 5.1 There are no significant people implications other than the resources required by legal services and asset management to negotiate missives and conclude the transaction. 6. Financial and Procurement Implications 6.1 The Council will benefit from a capital receipt for the property in the sum of £138,000. 6.2 The Council will no longer incur resources in managing the ground lease interest and collection of rent. 6.3 No financial outlays are required by the Council to facilitate this arrangement. 6.4 There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The sale subject to legal due diligence. There is a risk of the sale not proceeding due to any emerging issues during the diligence and sale process. 8. Environmental Sustainability 8.2 Any development of the property will require to be in line with current building standards. 9. Equalities Impact Assessment (EIA) 9.1 An Equality Impact Assessment is not applicable for the purpose of this report. 10. Consultation 10.1 Consultations have been undertaken with Finance, Greenspace and Regeneration and Regulatory.
Page 3
11. Strategic Assessment 11.1 By agreeing to this proposal the Council will benefit in terms of receiving a capital receipt and revenue savings in respect of maintenance of the site. 11.2 The recommendation in this report supports the delivery of the Council Strategic Plan and in particular the achievement of the following priorities: o Our Communities – Resilient and Thriving; o Our Council – Inclusive and Adaptable Laurence Slavin Chief Officer: Resources Date: 7 May 2024 Person to Contact: Michelle Lynn, Asset Coordinator Email: michelle.lynn@west-dunbarton.gov.uk Craig Maxwell, Estates Surveyor Email: craig.maxwell@west-dunbarton.gov.uk Appendices: None Background Papers: None Wards Affected: Ward 6