The Cabinet Committee met to discuss the disposal of surplus assets from both the General Fund (GF) and the Housing Revenue Account (HRA). They agreed to declare several properties as surplus to requirements, allowing them to be marketed for sale, and also reviewed the progress of the ongoing Asset Disposal Programme. A decision on the definition of a special purchaser of property assets was deferred.

Asset Disposal Programme Update

The committee received an update on the Asset Disposal Programme, which is a key part of the council's strategy for financial recovery. The report set out the progress made in the 2024/25 financial year and up to July 2025, as well as planned performance until the end of the 2026/27 financial year.

Since September 2024, £6.516m of assets had been sold from the General Fund and £13.409m from the HRA. Planned total sales proceeds for the General Fund are £16.536m in 2025/26 and £19.796m in 2026/27. For the HRA, the planned total sales proceeds are £10.618m in 2025/26 and £11.622m in 2026/27.

The report noted that impairment values continue to be a challenge, with the current value of some assets significantly below the carrying value in the council accounts. The report also noted that the broader property market remains in a challenging position across a number of asset classes, particularly office and retail, though development land, residential and industrial asset classes remain stable.

The Commissioner Review stated that:

Each of the sites outlined is unique and all disposals should be on commercial terms, subject to legal and financial due diligence and demonstrably evidence that the disposal is for best consideration reasonably obtainable and represents best value for the Council.

The committee was asked to note the sales performance and planned performance, and no decisions were required.

Surplus Housing Revenue Account (HRA) Assets

The committee considered a report that recommended declaring several HRA non-residential assets as surplus to requirements, allowing them to be marketed for sale. The list of HRA non-residential assets to declare as surplus included:

• Doddsfield Road Garage, SL2 2BE
• 197- 209 Lower Lees Road
• 204-209 Lower Lees Road
• Cowper Road
• Borderside 2
• Vaughan Way- Garage Site behind no 8
• Stile Road garages
• The Cherries
• Odencroft/Manfield Close
• Land adjacent to the garage at 378 Cippenham Lane (to rear of Hull Court)
• Amberley Road Garage, SL2 2LR
• Grampian Way Garages, SL3 8UH

The report stated that these assets are no longer required to fulfil their original purpose and have limited income generation potential. Selling them would reduce the financial burden of ongoing maintenance and generate funds for further development or regeneration in the borough.

The committee agreed to declare the assets listed in Appendix A List of HRA non-residential assets to declare as surplus as surplus. They also authorised the marketing of these assets for disposal, subject to property, legal, and financial due diligence, as well as any necessary liaison with local residents. The committee noted that any assets valued at more than £1m would require a further report to be brought back to the Cabinet for approval.

The committee also agreed that Land North 411 Farnham Road should be retained by the council as it now forms part of Arbour Vale School extension, reversing a previous decision to declare it surplus.

Surplus General Fund (GF) Assets

The committee considered a report seeking approval to declare several GF assets as surplus to requirements, allowing them to be marketed for sale. The list of GF assets to declare as surplus included:

• Manor Park Pavilion, Villiers Road
• Site of former Maria Cowland Centre, Bower Way
• London Road (A4 Site)

The report stated that these assets are no longer required for their original purpose and that selling them would reduce the financial burden of ongoing maintenance costs. The benefits from selling them will allow the GF to be recompensed for any capital costs of acquiring or improving the asset. Selling them will also enable development / regeneration in the Borough, which the Council is no longer in a position to deliver internally.

The committee agreed to declare the assets listed in Appendix A List of GF assets to declare as surplus as surplus. They also authorised the marketing of these assets for disposal, subject to consultation with other council directorates, as well as property, legal, and financial due diligence. The committee noted that any assets valued at more than £1m would require a further report to be brought back to the Cabinet for approval.

The committee also agreed that the Site of Former 1 Langley Broom and The Grove Car Park should be retained by the council. The Site of Former 1 Langley Broom is to be retained to safeguard a future Highways scheme on the A4, and The Grove Car Park generates more revenue in its existing use than an alternative use would.