Agenda item

(a)  Approved the grant of reversionary leases and effectively, the grant of further lease terms prior to expiry of the current leases, with the Tenant at Capital Point, 33 Bath Road, Slough.

(b)  Delegated authority to the Executive Director of Regeneration, Housing and Environment, in consultation with the Lead Member for Financial Oversight, Council Assets, Procurement, Revenue & Benefits and the Executive Director of Finance and Commercial, to negotiate and finalise the new lease terms and to enter into the reversionary leases with the Tenant consistent with the terms detailed in Appendix 1 – Lease Report.

The Lead Member for Finance, Council Assets, Procurement and Revenues & Benefits introduced a report that sought approval for the grant of reversionary leases between Lego Company Ltd (tenant) and the Council (landlord) at Capital Point, 33 Bath Road, Slough.

The proposed reversionary leases would secure additional rental income for the Council should the asset be retained or would have a positive impact in the event the Council chose to dispose of the asset in the future.  The current leases were due to expire on 23^rd June 2024.  Terms had been negotiated with Lego Company Ltd and were detailed in the Part II appendices which were considered and noted during Part I of the meeting without disclosing any of the exempt information.  Avison Young had provided advice to the Council and facilitated the negotiations with the tenant.  The advice from Avison Young was that the terms agreed represented the best consideration reasonably obtainable in the current market conditions.

In response to a question from a Lead Member it was confirmed that there was a break clause in the lease should it be required to be utilised.  The Cabinet welcomed the fact that Lego was a strong brand and employer within Slough and had a good rent payment history.  Lead Members agreed the recommendations.

Resolved –

(a)  Approved the grant of reversionary leases and effectively, the grant of further lease terms prior to expiry of the current leases, with the Tenant at Capital Point, 33 Bath Road, Slough.

(b)  Delegated authority to the Executive Director of Regeneration, Housing and Environment, in consultation with the Lead Member for Financial Oversight, Council Assets, Procurement, Revenue & Benefits and the Executive Director of Finance and Commercial, to negotiate and finalise the new lease terms and to enter into the reversionary leases with the Tenant consistent with the terms detailed in Appendix 1 – Lease Report.