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To approve the disposal of the
freehold interest of Clifford Road Car Park, Clifford Road, London,
SE25 5JH at the value stated in the confidential Part B
report.

Reasons for the decision

The disposal of Clifford Road
Car Park, Clifford Road 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 Clifford Road
Car Park, Clifford Road – 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 Clifford Road
Car Park, Clifford Road – the Council’s current
financial pressures and need to deliver savings means that not
selling Clifford Road Car Park, Clifford Road 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 Clifford Road Car Park,
Clifford Road, 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.