Purpose

This report recommends the
disposal of the freehold interest of Land, Purley Way Recreation
Ground, Croydon, CR0 4RQ.  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.  SHW undertook
an open market process.  A transparent and clear process was
provided for parties to undertake their due diligence to ensure
considered offers.  SHW received eleven
offers.  
 
Details of the offers received
and the marketing report 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 and Part B report and appendices the Corporate Director of
Resources and Section 151 Officer AGREED:
 
To approve the disposal of the
freehold interest of Land, Purley Way Recreation Ground, Croydon,
CR0 4RQ at the value stated in the confidential Part B
report. 
 

Reasons for the decision

The disposal of Land, Purley
Way Recreation Ground 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 disposals 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 Land, Purley Way
Recreation Ground – 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 Land, Purley Way
Recreation Ground – the Council’s current financial
pressures and need to deliver savings means that not selling Land,
Purley Way Recreation Ground 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 Land, Purley Way Recreation
Ground, 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.