Content

To approve surrender of current Ground Lease
and completion of new Ground
Lease.

Reasons for the decision

There are confidential appendices to this
report, which are exempt by virtue of paragraph 3 of Schedule 12A
of Part 1 of Schedule 12a of the Local
Government Act 1972 because they contain information relating to
the financial or business
affairs of any particular person (including the authority holding
that information).

The current lease does not permit for assignment and the company
has been restructured by the tenant. So, the council have agreed to
enter into surrender and new lease reflecting the new
company.
The terms of the new lease are in line with the market. The
proposed lease will generate a revenue to support delivery of the
Council’s services and meeting the Council’s
obligations under Section 123 of the Local Government Act
1972.

Alternative options considered

An alternative option would be to not
agree
to a surrender and new lease, and instead let the current lease
expire on 9th May 2026 at
which point the lease renewal could be made. Or terms for a new
lease to commence on
10th May 2026 could be agreed early. However, the Council are
willing to work with the
tenant and are satisfied with the company restructure, so can enter
into the surrender and renewal early. This also gives a longer term
certain for the rent and a modernisation of the lease for the
council