Torbay Council’s Asset
Management Strategy provided an overview of the Council’s
land and property estate and identified the main priorities for
managing and developing the estate, including the disposal of
surplus assets.
The remaining,
undeveloped land at Edginswell had been
marketed several times over recent years with no suitable proposal
coming forward detailing how high-quality jobs could be provided on
the site. Considering the current
market, the proposal was to progress freehold disposal rather than
to develop and/or lease the site to an operator. This approach transfered the substantial development risks to the
purchaser, reducing financial and operational exposure for the
Council.
Following a marketing
campaign undertaken by Vickery Holman, several bids were received
with the Torbay and South Devon NHS Trust bidding Market Value on
an unconditional basis. The Trust
sought completion by 31 March 2026, enabling them to manage the
cash flow of available funds.
The Torbay and South
Devon NHS Trust’s primary vision for the Edginswell site was to accommodate a range of
healthcare support services, including medical electronics and
patient transport services, alongside broader logistics and estates
functions. The acquisition would enable
the Torbay and South Devon NHS Trust to free up space on its
current Hospital site to enable much needed capital investment and
development. In the short term, the
Trust proposed to use the site for car parking/decanting with the
stipulated requirement of developing for employment-led uses within
a 5 year window. Failure to deliver the
employment use in that timeframe would present the Council with an
option to buy back the site for the same price that the Torbay and
South Devon NHS Trust paid to acquire it – i.e. the current
Market Value. A clause will also be put
in place to prevent the Torbay and South Devon NHS Trust from
selling on the site without first providing the option for Torbay
Council to buy-back at the same price that the Torbay and South
Devon NHS Trust paid to acquire it – i.e. the current Market
Value. Furthermore, the Council would
introduce a restrictive covenant to the title, preventing use of
the land for car parking 5 years after the transfer date.
Although the Torbay
and South Devon NHS Trust bid was not the highest in monetary
terms, it was the only unconditional offer. This approach significantly reduced the risk
associated with the transaction, ensured timely completion and
provided certainty for both parties.
Furthermore, disposal of the site to the NHS, as opposed to the
highest bidder, aligned with the strategic partnership between the
Council and the NHS, providing community wide benefits to
Torbay.
At the meeting
Councillor Chris Lewis proposed and Councillor Tyerman seconded a
motion that was agreed unanimously by the Cabinet, as set out
above.
