Non-residential property renting or leasing services

Description

The Council is taking a lease with a term of 50 years of the St George's Shopping Centre (the Property) from Aviva investors commercial assets GP Limited as general partner for Aviva investors realm commercial assets LP (the Landlord). The Landlord intends to construct additional leisure facilities at the Property (detailed in II.2.4). These works will be funded by the Landlord and the Council will not specify the works or oblige the Landlord to complete the works. Incidental to the lease the Landlord will also fund improvement works to the Property to bring it up to a good standard to sufficiently attract new tenants and retain existing tenants. As part of the arrangements Reef Estates Regen 1 Limited (the Asset manager) shall also provide general maintenance and management services as required under the terms of an asset management agreement. This arrangement constitutes a restructuring of interests in the Property — the Council is the freeholder. The Council will take a lease with a term of 50 years of the St George's Shopping Centre (the Property) from the Landlord. The Property is subject to various interests including occupational tenancies and the Council will be the direct landlord of those tenants. The Landlord intends to construct a cinema and restaurants (the Leisure facilities) which will be funded and specified by the Landlord (at a cost of approximately 12 500 000 GBP). The Council is not specifying the Leisure Facilities works and it will take a lease whether or not those works are undertaken. The Council is entering into the lease on the basis of the Landlord's offer to fund general improvement works to the Property to bring it up to a good standard to sufficiently attract new tenants and retain existing tenants. The works will be funded by the Landlord (at a cost of approximately 3 000 000 GBP) and the Council will not be specifying the works. As part of the arrangements Reef Estates Regen 1 Limited (the Asset manager) shall also provide general maintenance and management services for a term of 5 years (at a cost of approximately 470 000 GBP) under the terms of an asset management agreement with the Council. The works and services being provided by the Landlord and the Asset manager are incidental to the lease under which the Council is paying a total rent of 57 500 000 GBP (prior to indexation) over a period of 50 years. This arrangement constitutes a restructuring of interests in the Property — the Council is currently freeholder.