URL: https://democracy.thanet.gov.uk/ieDecisionDetails.aspx?ID=5340

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The council leases Royal Harbour multi-storey CP under a financing lease entered into in 1977, which has 48yrs unexpired. The lease contains a tenants option to purchase the leasehold interest, at certain trigger points, the next is in 2025. Exercising the option will have an improved long term budgetary impact for the council.

Content: The council leases Royal Harbour multi-storey CP under a financing lease entered into in 1977, which has 48yrs unexpired. The lease contains a tenants option to purchase the leasehold interest, at certain trigger points, the next is in 2025. Exercising the option will have an improved long term budgetary impact for the council. Cabinet approved exercising the option to purchase the leasehold interest in Royal Harbour Multi-storey car park, Ramsgate at the next available option trigger date and finance the purchase from borrowing. Exercising the option to purchase would reduce the council’s long term costs by a significant sum. It would give the council greater flexibility to consider how it uses the asset and its future.   The annual cost of financing the purchase is estimated to be less than the annual rent payable to the landlord, which escalates on each rent review cycle, and will give the council greater financial certainty. The council could decide not to exercise the option to purchase in 2025 or defer the option. There are further option trigger dates at five yearly intervals for the remainder of the lease term. This option has been rejected as it is less financially beneficial.

Date of Decision: December 19, 2024