The Executive Director for City Regeneration and Housing submitted a report (previously circulated, now appended) which detailed the acquisition of the long leasehold interest in St Aldate’s Chambers; and to agree to vary the long leasehold interest at 5 Queen Street.

The Chief Executive presented the report he said it was a once in a generation chance to purchase the lease.

The Executive Director for City Regeneration and Housing explained that the Council was buying the long leasehold for 126 years. Merton College still owns the freehold of the building.

The City Executive Board resolved to

1) GRANT approval for the acquisition of the long leasehold interest in St Aldate’s Chambers for £7,539,230 (which comprises the purchase price of £7,200,000 plus acquisition costs of £339,230).

2) AGREE the variations detailed in this report to the long lease of 5 Queen Street such that the City Council receives not less than £25,000 pa in rent until 2144.

3) RECOMMEND to Council the increase of the budget in the Council’s Capital Programme for the purchase of property in the sum of £539,230 to be financed from underspends in the Council’s General Fund Revenue Budget in 2014-15.