URL: https://mansfield.moderngov.co.uk/ieDecisionDetails.aspx?ID=1764

Decision Maker: Chief Executive Officer

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: To declare surplus and dispose of 53-55 Westgate on Heads of Terms recommended for approval.

Content:    Disposal of 53-55 Westgate, Mansfield   Delegated Decision Ref: 25/41/CEO       That the freehold interest in two retail units at 55 Westgate be  considered surplus to requirements   That the Corporate Asset Manager be instructed to dispose of the site in the sum of £75,000 to the head-lessee       The subject property comprises two retail units. The location of these units is on the periphery of prime retail in the town centre on the approach to the entrance to the Four Seasons Shopping Centre. MDC owns the freehold interest of the property which is let on a long leasehold basis on the following terms:- Full repairing and insuring ground lease (i.e. MDC have no outgoings or liabilities) Term of 119 years from 1983 – 77 years remaining The Council to receive 16% of the rents received by the head lessee.   The property comprises 2 units:- Unit 1, occupied by Specsavers on 10 year lease commencing from 15th May 2020. The current rent is £24,600 per annum. Unit 2, occupied by Mr Ejaz Ali on a 5 year lease commencing from 19th July 2022. The current rent is £21,000 per annum, rising to £22,000 per annum.   As outlined above the Council receive 16% of rents received by the head leaseholder and the income received over the last 3 years, together with the 1st quarter 2025/2026 is as follows: 2022-2023 (£4,686.12) 2023-2024 (£5,962.13) 2024-2025 (£6,912.00) 2025-2026 (£1,728.00) Q1 only   The income varies from year to year based on the actual income from the sub-lessees. MDC have been approached by the new head-lessee to purchase our freehold interest. The proposal has been discussed with the Director of Corporate Resources and the Portfolio Holder for Corporate and Finance, both of whom were supportive of a disposal to the head-lessee, subject to appropriate consideration being achieved.     Two other options have been considered, being retaining the property and continued income stream and disposal of the freehold interest on the open market by auction. Whilst these two options are available it is considered that the recommended option achieves the best financially in terms of capital and loss of revenue income.  

Date of Decision: September 11, 2025