Decision details

To seek the City Mayor’s approval to proceed with the disposal of the Innovation Centre, 49 Oxford Street, Leicester, LE1 5XY on a one-to-one basis with the current lease holder, De Montfort University (DMU) for £2.2m as a ‘Special Purchaser’ (as defined in the Council’s Constitution).

To approve the disposal of the Innovation Centre, 49 Oxford Street, Leicester, LE1 5XY on a one-to-one basis to the current lease holder, De Montfort University (DMU) for £2.2m with a covenant restricting use, along with an overage clause for future residential conversion.

It is noted that the City Barrister and Head of Standards Division, will prepare and execute all necessary documentation required. The Director of Estates and Building Services Division will agree on the required detailed terms.

The sale will enable DMU to integrate the Innovation Centre within its broader estate masterplan and play a critical role contributing to the training, innovation, research and economic growth in Leicester and wider region.

i)          Declining the offer from DMU to purchase the freehold outright in favour of a new lease at market rent per annum over a 10-year term.

It is therefore recommended to proceed with a one-to-one disposal to DMU as Special Purchaser.