The Corporate Director of Resources has decided to approve the disposal of Cemetery Lodge in Croydon to reduce the Council's debt balance and achieve capital receipts.

URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2509

Decision Maker: Corporate Director of Resources (Section 151)

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: This report recommends the disposal of the freehold interest of Cemetery Lodge, Thornton Road, Croydon CR7 6DD.The objectives for the disposal were to secure maximum receipts, achieve offers on an unconditional basis with the lowest possible transactional risk and to target capital receipts with the preferred bidder as quickly as possible for the Council to reduce its outstanding debt.  Copping Joyce undertook an open market process.  A transparent and clear process was provided for parties to undertake their due diligence to ensure considered offers.  Copping Joyce received eight offers.   Details of the offers received and the marketing report are included within the confidential Part B report, as this is exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended), as it relates to the financial or business affairs of any particular person (including the authority holding that information) and the public interest in withholding disclosure outweighs the public interest in disclosure.  

Content: This report recommends the disposal of the freehold interest of Cemetery Lodge, Thornton Road, Croydon CR7 6DD.The objectives for the disposal were to secure maximum receipts, achieve offers on an unconditional basis with the lowest possible transactional risk and to target capital receipts with the preferred bidder as quickly as possible for the Council to reduce its outstanding debt.  Copping Joyce undertook an open market process.  A transparent and clear process was provided for parties to undertake their due diligence to ensure considered offers.  Copping Joyce received eight offers.   Details of the offers received and the marketing report are included within the confidential Part B report, as this is exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 (as amended), as it relates to the financial or business affairs of any particular person (including the authority holding that information) and the public interest in withholding disclosure outweighs the public interest in disclosure.   For the reasons set out in the report the Corporate Director of Resources and Section 151 Officer AGREED:   To approve the disposal of the freehold interest of Cemetery Lodge, Thornton Road, Croydon CR7 6DD at the value stated in the confidential Part B report.   The disposal of Cemetery Lodge 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.   No disposal of Cemetery Lodge – 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 Cemetery Lodge – the Council’s current financial pressures and need to deliver savings means that not selling Cemetery Lodge 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 Cemetery Lodge, the asset could be retained. However, the financial benefit of a disposal at the red book valuation is significantly better than retaining. Disposal is therefore the recommended option.  

Date of Decision: July 8, 2025