Content

9.1

The
Senior Land and Property Surveyor introduced the report which
proposed to sell the Sheffield City Council’s freehold
interest in the land at Blonk Street to the current leaseholder to
enable further investment in the property. The report sought
approval of the Finance and Performance Policy Committee to dispose
of the land.

 

 

9.2

RESOLVED UNANIMOUSLY: That the Finance and
Performance Policy Committee:-
 
a)   
Approve the freehold sale of land at Blonk Street on the terms set
out in Appendix 1.
b)   
Authorise the Chief Property Officer to finalise the terms of the
sale.

 

 

9.3

Reasons for Decision

 

 

9.3.1

The
recommended disposal of the Council’s freehold interest
offers a clear and balanced set of benefits for the Council and the
City, as follows:
 
·      
The disposal will facilitate private sector investment in the
property, improving its condition and long-term sustainability, and
supporting regeneration and economic activity in the surrounding
area.
·      
It enables the Council to secure a capital receipt from a
non-operational asset, contributing directly to the Council’s
capital programme and supporting delivery of wider corporate
priorities.
·      
The transaction will remove ongoing management responsibilities
associated with holding the freehold interest, allowing the Council
to focus resources on assets that directly support service
delivery.
·      
The proposed private treaty sale to the existing leaseholder
represents best consideration reasonably obtainable, as confirmed
by specialist valuation advice, and provides the best possible
chance of completion within this financial year. Completion within
this financial year is essential to secure the anticipated capital
receipt, support budgetary targets, and enable timely reinvestment
in priority regeneration projects.
·      
The recommendation aligns with the Council’s Asset Management
Strategy, City Goals, and triple policy drivers (People,
Prosperity, and Planet) by promoting sustainable growth, inclusive
prosperity, and environmental responsibility.

 

 

9.3.2

For
these reasons, the proposed disposal is considered to represent the
most advantageous option for the Council in financial, operational,
and strategic terms.

 

 

9.4

Alternatives Considered and Rejected

 

 

9.4.1

Do
Nothing
 
The
Council could retain the freehold interest and continue to manage
it alongside the existing long lease. This would maintain the
status quo but would not generate any capital receipt, remove
ongoing management responsibilities, or enable the leaseholder to
invest in the property. Retaining the asset in its current form
represents a missed opportunity to facilitate regeneration and
private sector investment and secure a capital receipt.

 

 

9.4.2

Extend or renegotiate the existing lease.
 
Another option would
be to negotiate an extension of the current lease or revise the
lease terms to capture additional income or secure greater
investment obligations from the leaseholder. While this could
provide some additional revenue, it would not deliver the same
certainty of a substantial capital receipt and would leave the
Council responsible for ongoing management of the lease. It would
not provide the leaseholder with full control to justify
significant investment in the building.

 

 

9.4.3

Open market sale
 
The Council could seek
to sell the freehold interest on the open market to third parties.
While this may have the potential to test market value, it could
lead to uncertainty, delays, or sale to a purchaser with no
intention of investing in the building or contributing to the
regeneration of the area. A competitive process could also disrupt
the existing tenant’s operation and reduce the overall
attractiveness of the opportunity to the leaseholder, potentially
reducing the capital receipt.