The Chief Executive Officer has decided to declare a property in Mansfield surplus to requirements and instruct the Corporate Asset Manager to dispose of it by auction to achieve best consideration.

URL: https://mansfield.moderngov.co.uk/ieDecisionDetails.aspx?ID=1757

Decision Maker: Chief Executive Officer

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: To consider a report to declare surplus Lower Regent Street commercial property.

Content: Resolved by the Chief Executive Officer i.                   ii.                That the property known as Lower Regent Street, Mansfield be declared surplus to requirements, and: iii.              That the Corporate Asset Manager be instructed to dispose of the property by a method of sale to be determined and provided that the sale is at best consideration reasonably obtainable.   Reason for Decision: The subject properties form part of a saleable block of commercial property situated in Mansfield town centre. The parade extends to three storeys of brick built construction with stone cladding to the upper parts of the frontage dating from the 1920/30’s.   25 Market Place/6 Westgate   Comprises 2 retail shops converted into 1 no. larger unit fronting the Market Place. A lease was granted to Mansfield Building Society (MBS) on 23rd August 2019 for a term of 10 years. The current rent is £35,000 per annum with the next rent review due on 29th September 2026. MBS have a right of first refusal to purchase the property at market value and have made an offer of £100,000.   2a Regent Street and Regent Chambers   The premises comprise former, vacant office space on both the first and second floor of the property. The offices are currently uninhabitable and require considerable investment to bring the space into a lettable condition and to meet energy efficiency requirements. As a result of their condition, they are not being actively marketed and there is a limited market for office space in the town centre. The offices are accessible by either stairs or lift, however the lift is decommissioned.   4 Regent Street   An individual ground floor retail unit. A lease was granted to K B Foody Limited on 19th August 2024 for a term of 6 years. The current rent is £10,500 per annum and the next rent review is due on 19th August 2027.   Income & Expenditure   The last four financial years of income and expenditure have been provided for each property.   25 Market Place/6 Westgate   The current tenant boasts a strong tenant covenant and they have consistently paid their rent in full and on time. Costs for the property have been minimal and income considerably exceeds expenditure. Net income amounts to roughly £125,000 during the course of the four-year period. The EPC rating is D.   2a Regent Street and Regent Chambers   These properties have been vacant for several years and considerable costs have been incurred on repairs, maintenance, rates and utilities. These costs account for approximately £20,000/year and there is a net loss of in excess of £80,000 over the last four years. The EPC rating is F and therefore does not meet the MEES requirements for renting out property.   4 Regent Street   Although the property has recently been let out to a new tenant, the previous tenant accrued large arrears and there has also been a combination of maintenance costs, rates and utilities. The property has made a small loss of just under £1,000 over the four-year period. The EPC rating is E.   Other Costs   An asset condition survey has identified that additional on-going maintenance and statutory costs are going to be required on both 2a Regent Street and Regent Chambers. Further energy efficiency works will be required to bring the property in a lettable condition.   Summary   25 Market Place/6 Westgate is a sustainable and income generating asset and has consistently brought in revenue. However, while 4 Regent Street has previously brought in revenue, it has also incurred costs over the preceding years and there has been a noticeable turnover of tenants. 2a Regent Street and Regent Chambers are not currently viable assets and these units severely hamper the overall profitability and long-term viability of Lower Regent Street as they are not able to generate any revenue in the coming years and will continue to incur considerable costs.   The disposal of this property will alleviate future maintenance and management costs and it is anticipated that any future use of the long-term vacant 2A Regent Street and Regent Chambers site will offer more benefits to the local area than the present use of the property. A disposal will also generate a capital receipt.   It is proposed that the site is disposed of by auction to determine a value for the property which ensures best consideration is achieved.   The property could be retained by the Council, but it would continue to operate at a loss and the requirement for future maintenance works means that this is not financially sustainable.  

Date of Decision: August 29, 2025