THE proposed sale of an industrial unit site in Poole is unlikely to go ahead, according to the head of the BCP Council.
The local authority had agreed a fee with the current tenant of 35 Willis Way for the disposal of the site.
A cabinet report, prepared for a meeting in June and seen by the Daily Echo, said members would be asked to send a recommendation to the full council for the sale of the Fleets Industrial Estate land.
He said the capital receipt represented the ‘best value’ for the council and the money would be used to fund the ongoing ‘transformation programme’.
However, the BCP Council’s Tory leader, Cllr Drew Mellor, said it now appeared the authority would not proceed with the sale of the site, which houses 17 industrial units.
Cllr Drew Mellor, Head of BCP Council, said: “We are constantly monitoring the market and reviewing our asset base to ensure BCP residents are getting the best value for money.
“This sale proposal was suggested by our operating asset panel as an asset that could be disposed of, should the board wish to raise funds for our transformation process.
“But as we have said before, we are reluctant to sell assets unless it is clearly established that it is in the public interest.
“Furthermore, we have a continued drive to invest in assets for our future and to raise funds for our transformation process in other ways.
“Therefore, it seems likely that the Firm will not pursue this suggested sale and will instead seek to retain the asset.”
The firm’s report indicates that the tenant approached BCP Council to purchase the freehold interest, with terms subsequently negotiated.
The report by Sarah Knott, senior real estate expert, states: “The asset is classified as an investment asset and is not strategic.
“The capital receipt represents the best value for the board.
“Although rental income is received from the property, this is relatively low because it only represents land rent.
“There are 57 years unexpired on the lease so it will be some time before a real rent increase can be obtained.”
It is not yet clear whether the item will still be on the agenda for the cabinet meeting on June 22.
Keep up to date with all the latest community news across Dorset with our dedicated Facebook group. Click here to learn more and join.