Decision
Analysis
outcome: The recommendations to sell the Council's interests in the Beta building were approved.
summary: The decision at stake is whether to sell the Council's interests in the Beta building in Reading due to the tenant exiting in December 2025, resulting in a vacant property and no rental income.
topline: The Joint Strategic Committee has decided to approve the sale of the Council's interests in the Beta building in Reading to avoid funding a vacant property and continue absorbing interest payments on the original loan amount.
reason_contentious: This issue may be contentious as it involves financial implications for the Council and potential risks of holding the property in the medium term.
affected_stakeholders: ["Worthing Borough Council", "Tenant", "Assistant Director for Regenerative Development", "Leader and Cabinet Member for Resources"]
contentiousness_score: 6
political_party_relevance: There are mentions of the Leader and Cabinet Member for Resources in the decision-making process, indicating political influence.
URL: https://democracy.adur-worthing.gov.uk/ieDecisionDetails.aspx?ID=1226
Decision Maker: Joint Strategic Committee
Outcome: Recommendations Approved
Is Key Decision?: Yes
Is Callable In?: Yes
Purpose:
Content: Before the Committee was a report by the Assistant Director for Regenerative Development, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 10. The Beta building was an office property owned by Worthing Borough Council. It was held for management purposes in the Tier 1 Strategic Property Asset Fund and was let to a tenant who was exercising a right to exit in December 2025 from which point the property will be vacant and not producing any rental income. The purchase was debt funded in 2019. The Council ownership was in two parts: the head lease of the building and an 18% share of the campus freehold on which are built a total of three similar office properties of varying sizes including Beta. It was proposed to sell the Council’s interests in the property for the reasons set out in this report, with the resulting outcome that the Council would not have to fund a vacant property and would continue to absorb continuing interest payments on the original loan amount, less the sale proceeds The alternative was to hold the property in the medium term and the committee was referred to the various risks of holding the property set out in this Report which included; attempting to let it while continuing to absorb interest payments on the full original loan amount plus empty business rates, security and full loan costs against a backdrop of a very difficult market for offices, or investing in the property on a speculative basis. Decision: 1. That it be noted that the Council’s interest in the Beta Building Reading which comprised of the Council’s portion of the freehold interest in the campus together with a Leasehold interest in the built property and authorises the sale of the Council’s interest in the Beta Building, Reading on the terms set out in this Report and Exempt Appendix. 2. That authority be delegated to the Assistant Director for Regenerative Development to negotiate and finalise the sale contract and associated legal documentation in consultation with the Leader and Cabinet Member for Resources and authorise the Assistant Director to enter into all the legal documentation required to effect the sales, in accordance with the Heads of Terms set out in the Exempt Appendix. Call In: The call-in deadline for decisions will be 5.00pm on 13 June 2025
Date of Decision: June 3, 2025