Michelle Rooks-Dawson, Head of Development Sales and Assets, and Richard Paine from First Wessex, David Quest from Quest Estates (Chartered Surveyors and Valuers) and Glyn Burton from Hampshire Garages Investment Ltd. will be attending the meeting to discuss the proposed transfer of garage sites.
Minutes:
The Panel welcomed Michelle
Rooks-Dawson, Head of Sales and Assets, and Richard Paine, Land and New
Business Manager, from First Wessex. Also in attendance were David Quest from
Quest Estates (Chartered Surveyors and Valuers) and Glyn Burton from Hampshire
Garages Investments Ltd. They had been invited to the
meeting to explain the proposed transfer of the First Wessex garage portfolio.
David Quest
gave Members a presentation on future plans for the
garage sites, if they were to be sold to Hampshire Garages Investments Ltd. It
was explained to the Panel that there were 1,129 garages and parking spaces
with 604 (54%) let and 525 (46%) vacant.
The Panel
noted that the rental of garages was not the core activity of First Wessex; its
funding and resourcing had needed to be prioritised
for the provision of social housing. It was noted that
there had been a lack of pro-active management, no regular programme of
maintenance and repair and no long-term strategic objectives for continued
ownership.
The Panel
noted that, in order to achieve the goals of developing tidier and more
desirable garage sites, Hampshire Garages would need to work with an
established garage management firm. Members were advised
of the criteria for the possible management firm. There was a particular need
for a local office with local staff. Two firms had been shortlisted for award
of the management contract: Courtman and Co. and
Secure Parking and Storage.
Photographs
showing the condition of some of the garage sites were shared
with the Panel. It was explained that it would be
necessary to identify the garage sites in disrepair and the sites with a
greater tenant demand and re-build them. Members were informed
that the traditional garage size would not be suitable for parking an average
UK car. It was therefore intended to build garages in
three sizes to cater for different uses of the units. It was
suspected that security would be important to tenants and therefore, the
introduction of CCTV, secured fencing and lighting was intended.
The annual
rent for the garage sites had been £600 per annum and it was questioned whether
this was too high and was one reason for there being such a large number of
vacant sites. The potential for solar panels being fitted
to the roofs of the garages had been explored. It was noted
that if this was successful and resulted in greater income generation, a
reduction in rent for some customers could be a possibility.
The leading
competition for garage sites was the large number of self-storage companies. It
was noted that the main difference between the two was
that those companies offered heated and secure storage. Storage companies also
offered flexible rent contracts to customers, whereas garage contracts were
generally for twelve months.
Michelle
Rooks-Dawson assured the Panel that First Wessex had worked with the Council’s
Planning Service and this had confirmed that none of the properties included in
the portfolio had development potential.
The Panel NOTED the presentation and recommended
to the Cabinet that the transfer of the garage stock to Hampshire Garages
Investment Ltd. Be approved, subject to:
·
First Wessex entering into an agreement with the
Council to ensure that the capital receipt from the sale is reinvested in
schemes within the Borough
·
Hampshire Garages Investment Ltd. entering into
a Deed Covenant with the Council not to transfer or grant any long lease of the
stock or re-develop the stock without the consent of the Council
· First Wessex meeting the Council’s legal costs