QUESTIONS will be raised next week over empty offices which will likely cost local taxpayers thousands of pounds in unpaid rent.
In April 2018, West Berkshire Council bought an office building in Newbury for £8 million.
The building, called 4 The Sector, in Newbury Business Park, was supposed to gain income through tenants renting the offices.
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That rent was supposed to go towards funding public services in West Berkshire, and make up for the “increasing financial pressures combined with significantly reduced resources”, according to Richard Turner, the council’s property services manager.
However, 4 The Sector — 28,697 square feet of Grade A office space — has been vacant since it was bought. While the council initially received money in lieu of rent from the previous owner, this agreement was only until March 31, this year.
So questions will be raised about what happens next with the offices, at a meeting of the full council on March 3.
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Councillor Steve Masters (Green, Speen) will ask: “What contingencies are in place if 4 The Sector continues to be unlet?”
As well as 4 The Sector, eight other buildings across the country make up the council’s commercial property investment strategy; which do have tenants.
When the strategy was first approved, it was supposed to raise £2 million a year. But if 4 The Sector remains vacant then only £454,763 will be raised next year from the strategy, according to Mr Turner — less than a quarter of what was originally suggested.
Cllr Masters will also ask: “Is disposal of 4 The Sector being explored or is this out of the question?”
The leader of the council, Cllr Lynne Doherty (Con, Speen) previously said: “There is a net benefit to taxpayers from the investment, a risk fund has been set up for potential voids, and the criteria would reflect the full investment portfolio.”
This year, the investment properties have raised £1,152,625 in rental income. Cllr Ross Mackinnon (Con, Bradfield) has highlighted that this saves the taxpayer money.
So far, the council has spent £62.6 million buying the nine investment properties.
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