Issue 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.