REGARDING the Bath Road car park redevelopment (Daily Echo, August 7), it is clear that many think this is a most unsatisfactory ‘sale and leaseback of part’ deal for the council.
On the face of it, one wonders how this prime site can be worth so little (Bournemouth to get £1.35million for freehold), yet the replacement car park attracts such a high rent (Bournemouth to pay initial rent of £430,780 pa indexed to inflation for 75 years).
However, there may be reasons such as the upfront capital receipt.
As a retired chartered surveyor (specialising in valuation), I would suggest that a truly independent report be obtained by the council from a respected body, i.e. the Valuation Office.
This would either endorse terms as perfectly acceptable on valuation grounds, or otherwise as the case may be.
Two figures are needed – current open market value of the existing freehold interest with vacant possession, and, current open market rental value of the new car park as if already built.
In addition, comment is needed on any other value-significant terms of the deal, the advisability of the lease length and index-linking.
W A HOODLESS, Harland Road, Bournemouth
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