Troubled Slough council out-of-town assets value drops

The Odeon Cinema in Basingstoke is just one of the four out-of-town assets Slough Borough Council wants to sell off

A debt-ridden council is still planning to sell commercial property it owns - despite their value having dropped by millions of pounds.

Slough Borough Council (SBC) wants to offload a cinema and supermarket in Hampshire, as well as a Wolverhampton DIY store and a Yorkshire warehouse.

It is part of efforts to sell up to £600m worth of its properties and land to reduce its £680m borrowing debt.

The value of the assets has dropped by more than £5m since their purchase.

As part of a major disposal programme, SBC is selling its portfolio to bridge its £479m blackhole.

Council leader James Swindlehurst previously said the four out-of-borough assets were the first to go as non-operational assets outside Slough that are "not loved" by residents are no longer needed.

Officers have recommended senior councillors to sell off the Odeon Cinema in Basingstoke, Waitrose in Gosport, the Wickes store in Wolverhampton and a Euroway warehouse in Bradford.

According to a report, the properties were bought between 2017 and 2019 for a total of £31.8m.

The Waitrose in Gosport, Hampshire is one of the other assets being recommended for sale by officers

The Odeon and the Waitrose had fallen in value by £5.2m, due to Covid-19 and inflation affecting the cinema market, according to the Local Democracy Reporting Service.

The supermarket trade in Gosport had fallen and Waitrose has said it does not wish to extend its lease when it expires in 2025.

Two bids were received for the Basingstoke cinema, whereas only one bidder was interested in the Waitrose supermarket.

The other two assets largely maintained their value and attracted significant interest and bidders.

The four assets could be sold for a total of £27.9m - an overall loss of £3.9m - and is strongly supported by the commissioners sent in by the government.

However, the commissioners stated: "It is hard to see why the council, in the light of this information, could have decided that these investments were a good and appropriate use of public money."

A decision will be made by senior councillors at a cabinet meeting on 21 September.