Sainsbury’s site acquisition supports local economy

Published on 23rd October 2018

Cllr Rowena Hay stood outside Sainsbury's following council acquisition

The borough council has successfully acquired the freehold of the Sainsbury’s site on Prior’s Road in Cheltenham. Completion took place yesterday (22 October). The property will remain as a supermarket.

Councillor Rowena Hay, cabinet member for finance said: ‘’The purchase will contribute towards making the authority more financially sustainable at a time when government funding is diminishing to continue to invest in front line services and community development.

‘’Acquiring Sainsbury’s, together with the recent purchase of Ellenborough House highlights the council’s commercial aspirations. Negotiations have taken almost a year and I am pleased that we are at the point of completion.

‘’This investment also demonstrates the commitment the council has in the strength of Cheltenham’s current and future economic prospects.’’

Paul Jones, executive director for finance and assets said: “The taxpayers of Cheltenham can be assured that significant due diligence and negotiations went into this acquisition, which complements our already well balanced and diversified property investment portfolio.

‘’The net income from our property investment portfolio amounts to £1.6m per annum and is projected to rise to £1.8m by 2022/23. This source of income is critical to funding the valued services provided by the borough council to its residents and replaces the government funding that we once relied upon.”

The property comprises approximately 44,500 sq ft, 187 parking spaces and a six pump petrol station, on a four acre site.  The purpose built store, constructed about 10 years ago, is the only sizeable supermarket on the eastern side of Cheltenham.


Notes

Photo attached shows Cllr Rowena Hay outside Sainsbury’s.

All financial details are subject to a confidentiality agreement between the borough council and the seller.

For press enquiries contact: Katie Sandey, communications and web team leader, communications@cheltenham.gov.uk, 01242 264231