Decision details

City Centre Land Transaction - St Aldate's Chambers

Decision Maker: Executive Director (Development)

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

Cabinet, on 12 July 2023, resolved to:

1.       Delegate authority to the Executive Director (Development), in consultation with the Head of Financial Services / S151 Officer, the Head of Law and Governance and the Deputy Leader (Statutory) - Finance and Asset Management to enter into lease(s) to let the whole or parts of St Aldate’s Chambers to any tenant on terms which fulfil the requirements of S123 Local Government Act 1972.

Decision:

To enter into agreement for lease, lease and licence for alterations to let the whole of St Aldate’s Chambers in line with the terms set out in the Confidential Appendix 1.

Reasons for the decision:

The current standard city centre office requirement is for 4,000 – 5,000 sq ft of space, grade A specification and in “walk in” condition. Occupier demand for SAC, which extends to c.40,000 sq ft and below grade A specification, is a more specific HQ style building requirement with a tenant looking for a much larger floor area and willing to undertake significant works. These tenant requirements are far fewer and, although SAC offers the only building of this type currently in the market, it is important to secure the current interest given the financial benefits a letting of whole provides.

The city centre office rents remain resilient with demand still outstripping supply. North Bailey House, New Inn Hall Street, Oxford is understood to be under offer as a whole (c.20,000 sq ft) at £62.50 psf. This is a newly refurbished property offering Grade A office specification.

Park Central, Park End Street is a current off market office proposition. It is understood that the top floor is under offer at £60.00 psf with a further tenant discussing terms at ground and first.

Alternative options considered:

These are set out in the report to Cabinet dated 12 July 2023 titled “City Centre Land Transaction: St Aldate’s Chambers”.

Signed off by senior officers:

Decision taken by Tom Bridgman, Executive Director (Development) in consultation with Nigel Kennedy, Head of Financial Services; Emma Griffiths, Interim Legal Services Manager (for the Head of Law and Governance); Jane Winfield, Head of Corporate Property; and Councillor Ed Turner, Deputy Leader (Statutory) – Finance and Asset Management.

Publication date: 03/11/2023

Date of decision: 02/11/2023

Effective from: 08/11/2023

Accompanying Documents: