Decision details

Land at Bonville Road is a site of approx. 0.36 acres which is let to European Friction Industries Ltd (EFI) for a term of 75 years from 2.7.1957 (8 years unexpired) at a fixed rent of £500pa. The site is a landlocked site, adjoining EFI’s existing factory premises which is owned on a freehold basis by EFI as shown on the attached plan.
A sale was agreed for the following reasons:
•There is no rent review in the current lease so there is no immediate prospect of rental growth
•The rent passing is only £500pa.
•The council would want to support EFI in growing their business and potentially creating more jobs in the locality.
•EFI are a special purchaser by virtue of their neighbouring ownership meaning that HTC has negotiated a significant overbid for the site. A special purchaser is a particular buyer for whom a particular asset has a special value because of advantages arising from its ownership that would not be available to other buyers in a market.
•The Council cannot use the site for any alternative purpose because it is leased to EFI and the Council has no way of obtaining vacant possession. Furthermore, EFI would not dispose of the site as it is integral to their operation. Even if they did the site is landlocked with no access and is therefore incapable of being independently developed.

The council’s freehold property is sold to European Friction Industries Ltd (EFI).

Option 1 - Properties such as this within the Investment Estate have increasingly been considered suitable for sale as the councils’ need for capital receipts has increased.
Option 2 - The property cannot be considered for operational use or for use by the councils’ partners because it is let on a long-term lease and forms part of an existing factory site.
Option 3 - Negotiations were undertaken by the councils’ agent Hartnell Taylor Cook who have recommended the offer for acceptance.
Option 4 - Allowing EFI who are a successful business the potential to expand their business operation is likely to benefit the local economy. EFI are a key local business employing approx. 150 people in manufacturing jobs. The split tenure of their site at Bonville Rd is a potential threat to their long term operation. In 2018 the council sold a nearby staff car park to EFI which also helped consolidate their Bristol operation at a time when the company were considering closing their Bristol operation and expanding at their Midlands base.