Purpose

This report recommends the
disposal of the 999 year long leasehold interest of the Purley John
Fisher Rugby Football Club, 255 Coulsdon Road, CR5 1EE. The
objectives for the disposal were to secure maximum receipts,
achieve offers on an unconditional basis with the lowest possible
transactional risk and to target capital receipts with the
preferred bidder as quickly as possible for the Council to reduce
its outstanding debt.  The clear preferred bidder was
identified as the existing tenant, and they were treated as the
special purchaser.   
 
Details of the offer received
are included within the confidential Part B report, as this is
exempt information as defined in paragraph 3 of Schedule 12A to the
Local Government Act 1972 (as amended), as it relates to the
financial or business affairs of any particular person (including
the authority holding that information) and the public interest in
withholding disclosure outweighs the public interest in
disclosure.  
 

Content

For the reasons set out in the
report the Corporate Director of Resources and Section 151 Officer
AGREED: 
 
To approve the disposal of the
999 year long leasehold interest of the Purley John Fisher Rugby
Football Club at the value stated in the confidential Part B
report. 
 

Reasons for the decision

The disposal of Purley John
Fisher Rugby Football Club supports the requirements of the
Ministry of Housing, Communities and Local Government (MHCLG)
through the reduction in capital borrowing and annual revenue costs
and the requirements as set out in the Improvement and Assurance
Panel’s Exit Strategy.  Further commercial reasons for
the disposal are included in the Part B
report.   
 
The recommended offer for
acceptance represents best consideration. The cost of holding
and running assets is second only to staffing costs and therefore
it is important to ensure that they are used in the most
cost-effective manner.  A business case/feasibility assessment
for the disposal is included within the confidential Part B
report. 
 

Alternative options considered

No disposal of Purley John
Fisher Rugby Football Club – the business case for disposal
is set out in the Part B report.  As set out above, the
overall aim of the approved Corporate Asset Management Plan and the
Annual Asset Disposals Plan is to reduce costs of retained
corporate assets used for the delivery of services and to maximise
capital receipts.  This disposal is required to meet those
aims and enable the Council to achieve the required asset disposals
to help support the financial requirements in line with the
MTFS. 
 
No disposal of Purley John
Fisher Rugby Football Club – the Council’s current
financial pressures and need to deliver savings means that not
selling Purley John Fisher Rugby Football Club at this time would
impact on the opportunity to reduce its debt balance. 
Reducing the Council’s debt balance is a requirement from
MHCLG, and the government appointed Improvement and Assurance Panel
as part of the ongoing discussion on options for securing ongoing
financial sustainability for the Council.   
 
For the Purley John Fisher
Rugby Football Club, the asset could be retained as it is revenue
producing. However, the financial benefit of a disposal at the red
book valuation is significantly better than retaining the current
income stream. Disposal is therefore the recommended
option.