Financially troubled Surrey council sells town centre shopping site to help bring down debt
Town centre shops are to be sold off to help Surrey Heath Borough Council pay down its debts.
Charity Aid Store site in Obelisk Way, Camberley, has been a loss-maker for the financially troubled authority – despite being fully occupied and will now be sold.
Like other recent Surrey Heath sales, notably the Yorktown car park, the council has kept its price secret as it pursues selling underutilised sites deemed surplus to requirements.
It comes as the council must shed £1.74m this year, and £3.14 overall, through savings, reduced interest payments, and a further £500,0000 from service delivery reviews.
The sale was welcomed across the political floor.
Councillor Kel Finan-Cooke, property and economic development portfolio holder, said: “Despite it being fully let the building currently produces a negative net income of minus £4,500 per annum.
She added: “Should the council continue to own the building it will require substantial repairs in the near future which would mean unavoidable capital expenditure.
“The building is more valuable to be sold off separately with the potential to convert the current retail use into a mixed residential scheme.
“This will create homes as well as reducing the oversupply of retail within the town centre.
“In my view the financial case to sell is compelling.”
The 15,564 sq ft site covers two floors and includes the eight parking spots to the rear.
It is currently let out to three shops bringing in a gross income of £45,015 in the year ending March 2025. However, once landlord costs for service charges, and rates are taken into account the site loses money.
The council said there is scope to offer the affected businesses new spaces within Camberley town centre.
“Following the full marketing exercise competitive offers were received, and a sale is proposed at a level which will enable the council debt interest costs to be reduced by repaying external debt”, papers presented to the September executive committee read.
Obelisk Way, earmarked in the local plan for mixed use, is adjacent to the London Road development site and has potential to benefit from the surrounding redevelopment.
Cllr Jonny Cope, deputy leader of the Conservative opposition group, said: “I think this is quite a sensible disposal.”