Last updated at 14:32, Friday, 01 July 2011
Carlisle City Council is embarking on an unprecedented sale of property, which aims to raise at least £30m and probably much more.
More than 50 council-owned assets are for sale including the freehold of Carlisle Airport, the University of Cumbria’s city-centre campus next to Tullie House, and BBC Radio Cumbria’s premises in Annetwell Street.
The whole of Durranhill, Willowholme and Viaduct industrial estates are up for grabs, as is part of Rosehill Industrial Estate, Currock Road retail park and several shops. There are sites for a superstore and large-scale housing in Morton, many more smaller plots for housing, plus redundant depots, workshops, lock-up garages and agricultural land.
Sitting tenants will not be affected. They will simply pay rent to the new landlord.
The list is in a report, Property Portfolio Options, drawn up for the council by consultants Montagu Evans and obtained by The Cumberland News.
The document is marked ‘private and confidential’ and ‘exempt from the Freedom of Information Act’. It was adopted as policy by councillors meeting in private in April.
The sell-off has started and will be phased over five years. Council leader Mike Mitchelson said: “We have made a strategic decision. Now that the Northwest Regional Development Agency is being wound up there is no-one coming up with cheques for investment and regeneration.
“The council is a major landowner and we need to maximise the use of our assets to maximise economic growth within the city.”
Government rules do not allow money from asset sales to be used for day-to-day spending.
Some of the cash raised could be used for major projects such as the Sands Centre redevelopment.
But the bulk will be reinvested in buying property to produce an income for the cash-strapped council. It owns 214 properties, worth an estimated £138m, which bring in rental income of £4.8m a year but cost £755,000 a year to manage.
Montagu Evans has evaluated the whole portfolio.
Some are classed as ‘operational assets’, such as the Civic Centre, which the council needs to function. Then there are ‘economic-development assets’ such as the Enterprise Centre in James Street. The rest are ‘investment assets’ that produce income.
If the money raised by selling these could be better reinvested elsewhere, Montagu Evans recommends disposal.
In some cases, the report says, the only realistic potential buyer is the tenant. Examples include Carlisle Airport and the Radio Cumbria studios.
Prized assets that will not be sold include the Lanes shopping centre, the Market Hall, Kingstown and Parkhouse industrial estates, Greymoorhill Retail Park, the Asda freehold at Parkhouse and McDonald’s drive-through restaurant at Kingstown.
Also being retained are Adriano’s Restaurant in Rickergate and a house in Warwick Street that were bought for £900,000 in 2008 for a Carlisle Renaissance scheme that never materialised.
The council is unclear if it is entitled to sell these as they were bought with funds from the Northwest Regional Development Agency.
Some cash will be reinvested in improving industrial estates, particularly Kingstown and Rosehill, with a view to boosting rental income.
FOR SALE…
Land at Morton, retail site off Wigton Road: Grassed land off Wigton Road on the western fringe of Carlisle with planning consent for a superstore. Reason for sale: Significant capital value.
Land at Morton, residential site off Dalston Road: Residential development site between Dalston Road and Wigton Road. Reason for sale: Significant capital value. To be sold over three years.
Carlisle Airport: Comprises 540 acres of land, hangers, airport buildings runways. Reason for sale: Investigate sale to tenant, Stobart Group, otherwise retain.
Medical Centre, Fusehill Street: Medical centre including surgery, a pharmacy and dental practice and other health-related services. Reason for sale: Peppercorn lease, no reviews or income. Potential sale to tenant.
University of Cumbria, Paternoster Row and Castle Street: University campus, two sites of two and three storeys, mainly listed buildings, in the city centre next to Tullie House Museum. University of Cumbria’s lease ends 2017. Reason for sale: Unless there is a plan for Tullie House to use the properties, sell now to maximise benefit of the remaining rental income or hold until lease ends and break up.
BBC Annetwell Street: Ground lease for BBC Radio Cumbria studio on Annetwell Street, let on peppercorn rent with no review. Reason for sale: Possible sale to BBC.
Rosehill Industrial Estate: Modern, commercial and industrial estate developed in the 1970s/1980s on the eastern fringe of city close to junction 43 of the M6. Reason for sale: Only those parts where value has been maximised. There are 20-plus plots where the freehold might be sold to the tenant.
Durranhill Industrial Estate: Industrial estate constructed in the 1950s to the south east of the city. Reason for sale: To allow the private sector to deliver better environment.
Willowholme Industrial Estate: 1950s and 60s-developed industrial estate with 21 sites located to the west of the city centre. Estate roads are unadopted in part. Severely affected by floods in 2005. Reason for sale: Management intensive and producing very low returns.
Viaduct Industrial Estate: Small commercial estate developed in the 1970s to the west of the city centre. Comprises two leisure users and a non-food retail unit all let on 99 year leases. Reason for sale: Low-yielding asset with little potential to add value.
Longtown Industrial Estate: Small industrial estate developed in the 1970s off Brampton Road on the south east fringe of Longtown. Reason for sale: Small lot with little long-term benefit. Not a strategic location.
Airport Industrial Estate, access and woodland: Some access roads and woodland around Carlisle Airport. Reason for sale: Investigate sale to leaseholder, otherwise retain.
Long Island Park Industrial Estate: Small industrial estate situated on the south of the city. Reason for sale: Small asset with intensive management.
Port Road workshops and storage land: Block of five workshop units with a storage compound to the rear. Reason for sale: None given.
James Street workshops: Built in the late 1980s comprising seven units, three of approximately 1,000sq ft, which have a display window and front onto James Street, and four of 750 sq ft at the rear. A quarter of a mile from the city centre. Reason for sale: Small asset with intensive management.
Burgh Road Industrial Estate: Small industrial estate situated in the western fringe of the city. The sites have been developed and sold. The council’s interest is in small areas of peripheral landscaped and amenity land. Reason for sale: Small lot with little long-term benefit. Not a strategic location.
South John Street workshops: Eight terraced workshops, each 500 sq ft, adjacent to a busy arterial route south of the city centre. Reason for sale: Small asset with intensive management.
Hewson Street workshops: Five modern workshops located in two blocks of two and three. The properties are in a mixed commercial area to the south-west of the city centre. Reason for sale: Small asset with intensive management.
Currock Road Retail Park: Non-food retail park and building-supplies outlet south of the city centre. Three sites are let on ground leases and there is some undeveloped land. Reason for sale: Stand-alone investment with 21-yearly rent reviews. To be sold after rent review in 2013-14.
Retail units, 1-3 Market Place, Brampton: Three shops, two three-bed flats above and three garages to the rear. Reason for sale: Stand-alone investment with little strategic merit.
Retail unit, 17 Scotch Street: Lock-up shop on the corner of Scotch Street and East Tower Street leased to Save the Children. Reason for sale: Small, stand-alone investment. Tenant may be offered an extended lease before disposal.
Treasury Court: Courtyard-development with access from Rosemary lane and Fisher Street. Provides retail units fronting Fisher Street and other commercial units facing the courtyard with accommodation on three floors. Reason for sale: Stand-alone investment with little strategic merit.
Raffles development land: Ten cleared plots of land within the Raffles Estate. The plots vary in size and shape. Reason for sale: Regeneration opportunities. To be sold over five years.
Land at Dene Crescent: Open grass land within a former council estate at Belah. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up. Sell for housing. May be controversial.
Land at Boundary Road: Land comprising part school playing field, grazing land and pigeon lofts south east of the city centre. Reason for sale: Underutilised section of open land that has potential unrealised value. Sell for housing. May be controversial.
Land between Eastern Way and Durranhill Road: Area of open space adjacent to the housing estate and dual carriageway. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up. Sell for housing. May be controversial.
Land at Wood Street: Site of former Newtown bowling green in a residential location off Newtown Road. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land at Leabourne Road: Site of former council depot now residential development land. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land at Low Meadow: Already SOLD for £324,000 for extra-care housing. Recreational and amenity land within the Raffles estate. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land at Whinnie House: Road: Residential land, ground lease to a housing association, site of 30-bed sheltered-housing unit. Reason for sale: Small assets, low income levels.
Land at Lonning Foot, Rockcliffe: Small sloping in-fill site within the village, suitable for residential development. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land at Gelt Rise, Brampton: Already SOLD for £200,000 for housing. Greenfield site on the eastern fringe of Brampton adjoining residential development. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land south of Kingwater Close, Brampton: Agricultural land south west of town centre on the fringe of residential development at Gelt Rise. Reason for sale: Small property taking up valuable proactive management time. No income but has capital tied up. Sell for housing.
Esk Street depot, Longtown: Already SOLD for £13,000, Former telephone exchange comprising a single-storey detached brick building, used as a depot. Reason for sale: Small lot with little long-term benefit.
Land at Geltbridge: Already SOLD for £150,000. Agricultural land adjacent to A69 on the outskirts of Brampton. Surrounds the former Capontree Hill refuse tip owned by Cumbria County Council. Reason for sale: Small property taking up valuable proactive management time.
Grazing land at Harker: Aready SOLD for £32,000. Land on east side of the A74, opposite Kingmoor Business Park, three miles north of city centre. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Land at Carlisle Airport: Six fields and a small area of scrub woodland around Carlisle Airport. Reason for sale: Small property taking up valuable proactive management time.
Land at the old isolation hospital, Moorhouse: Gently sloping land in two enclosures, accessed from private track off Moorhouse Road, three miles west of the city centre. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Broad Street garages: Ten lock-up garages in a residential area off Warwick Road. Reason for sale: Small lot size with little long-term benefit.
Allason Court garages, Brampton: Four lock-up garages in a former council estate. Reason for sale: Small lot with little long-term benefit.
Garages at Tullie Street: Block of two lock-up garages and adjoining land, off Warwick Road. Reason for sale: Small lot with little long-term benefit.
Garages at Isabella Street: Block of five lock-up garages and associated parking area. Reason for sale: Small lot with little long-term benefit.
Garages at Gardenia Street: Three lock-up garages off Currock Road adjoining the council depot at Bogg Yard. Reason for sale: If no benefit to adjoining depot.
Rigg Street Willow garage: Land on the south side of Rigg Street, Caldewgate, comprising 467sq yds and buildings. Reason for sale: Small stand-alone investment of little strategic merit.
Carlisle residential enclosures: Various sites of residential land let on ground leases. Reason for sale: Small assets, low income levels.
Electricity substations: Twenty-one small parcels of land, various locations, occupied by United Utilities for electricity substations. Reason for sale: Small, management-intensive property.
Land at central Longtown: Gardens and amenity land in central Longtown. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Morton filling station: L-shaped parcel of land on the western fringe of Carlisle next to Morton filling station. Reason for sale: Low income producing property. Reinvest capital to generate greater returns.
Doctors Surgery, Eastern Way: Site for doctors’ surgery on the corner of Eastern Way and London Road in the south of the city. Reason for sale: A stand-alone investment, has little management potential.
Stanwix House and Cottage: A pair of traditionally-built 19th century listed houses of brick and slate used as residential accommodation for the University of Cumbria. Reason for sale: Low revenue compared with capital potential. Little strategic value.
Land at Beverly Rise: Area of sloping agricultural land on the eastern fringe of the city close to the M6. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
Workshop depot to rear of Old Raffles Parade depot: Purpose-built depot of portal-frame construction to the rear of Old Raffles Parade. Reason for sale: Small property taking up valuable proactive management time. No income but capital tied up.
First published at 14:09, Friday, 01 July 2011
Published by http://www.cumberlandnews.co.uk
Have your say
In answer to Anon. When the NWDA offered the Council the funding, there was a claw-back clause attached.
Posted by Anon on
1 July 2011 at 16:00