Council business park sale agreed above valuation

The sale of TeesAMP, at Riverside Industrial Park, has been agreed for more than its £14.5m valuation

A council-owned manufacturing park is set to be sold for a "significantly" higher price than it was valued, a report has said.

Middlesbrough Council said the sale of TeesAMP had been agreed with the highest bidder for a sum above its £14.5m valuation.

The deal was secured after more than a dozen parties put in offers to buy the site.

The sale will reduce the council's need to use millions of pounds of exceptional financial support from the government, the Labour-led local authority said.

The buyer and the final sale price have not been shared for commercial reasons but the details will be made public about six months after the deal is completed.

Middlesbrough Council is one of 19 local authorities allowed to borrow money from the government to fund day-to-day spending in 2024-25 after it faced a £6.3m budget deficit.

The sale of TeesAmp, on the Riverside Industrial Park, will reduce the need to use £4.6m of the £13.6m approved emergency support, according to the Local Democracy Reporting Service.

'Best and final'

TeesAMP is an 11-hectare (27.2 acre) site which has been fully let to advanced manufacturing businesses.

It brings in more than £1m a year in rental income for the council.

The sale includes two sections of the site - developed units (TeesAMP 1) and undeveloped land (TeesAMP 2).

A report submitted to the council said: "The interest in purchasing the site has been strong, with multiple offers received.

"A ‘best and final’ offer stage has subsequently been undertaken which has led to the recommended offer significantly exceeding the expected receipt."

TeesAMP was among the council-owned buildings included in the authority's controversial asset review, agreed by the executive last year.

Council bosses argued without the plan, the local authority could be forced to issue a S114 notice, effectively declaring itself bankrupt.