Decision Maker: Director of Finance
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Decision:
The
grant of a new 10-year lease of Kings Ash House to the NHS on
largely identical terms to the existing lease.
Reasons for the decision:
To
secure renewal of the lease to retain the Council’s tenant
and ensure a continuation of the income.
Alternative options considered:
The
alternative here is to refuse renewal of the lease and seek vacant
possession upon lease expiry. The
consequential void period and costs associated renders this option
unviable for the Council.
Implementation:
Information:
The
Torbay and South Devon NHS Foundation Trust (the NHS) occupy Kings
Ash House, an office block owned by Torbay Council located on the
outskirts of Paignton. The original
lease is a 10-year agreement expiring 16 June 2026.
The NHS
now wish to enter into a new 10-year agreement with break at year
5. Negotiations have concluded with the
rent to remain as per the passing rent under the existing lease,
with all other terms unchanged. For
internal accounting purposes the NHS need to conclude the
transaction by 31 March 2026.
In
granting a new lease to the NHS, the Council is securing a
profitable income from the asset for a further 10 years, at a time
when the market is challenging for the office sector.
Furthermore, the lease aligns with the strategic partnership
between the Council and the NHS, with the grant of a new lease to
indirectly provide community wide benefits to Torbay.
Interests and Nature of Interests Declared:
Publication date: 02/04/2026
Date of decision: 30/03/2026
