On 14
December 2021, Cabinet:-
(i) authorised the
Assistant Director of Property to conclude a sale conditional on planning of the
surplus Council owned property, 1 Lancaster Circus, Queensway City Centre, B4
7DJ (“the Property”) as shown edged bold on attached plan at Appendix 1 of the
report, and extending to 5,916 sqm, by the grant of a new 250 year lease at a
premium to Sama Investment Group (“the Purchaser”) as detailed in Exempt
Appendix 2 of the report;
(ii) delegated authority to
the Assistant Director of Property jointly with the Leader of the Council,
should they determine through assessment and approval of the business case that
it would be of financial benefit to the Council, to agree final terms for and
the disposal of the Property, by way of either a transfer of the freehold or
the grant of a long lease of a suitable term, to Birmingham City Propco
Limited, a wholly owned Council subsidiary, subject to the benefit and the
burden of any, then, existing contract for any disposal of the Property to the
Purchaser;
(iii) noted that the
Purchaser will also pay a contribution towards the Council’s surveyor and legal
costs, as detailed in Exempt Appendix 2 of the report;
(iv) noted the delegation
approved by Cabinet on 27July 2021 to the (now) Director of Council Management,
in consultation with the Leader of the Council, the authority to buy shares in
and approve loans to, Propco Ltd up to an aggregate limit of £100m, on commercial
terms and in compliance with HMRC rules on ‘thin capitalisation’, subject to a
full business case for each investment being approved;
(v) authorised the City
Solicitor to prepare, negotiate, execute and complete all relevant legal
documentation to give effect to the above.
THE DEADLINE FOR CALL IN IS 1600 HOURS ON MONDAY 20 DECEMBER 2021.