Woking council buys final stake in Wolsey Place

 

Woking council has become the sole owner of Wolsey Place in Woking, Surrey, after buying I.M. Properties’ stake for £68m.

 

The 230,000 sq ft scheme includes Alexander House, Export House, 65 shops as well as residential.units above them.

 

The council has owned the freehold of the site since it was built in partnership with Norwich Union (now Aviva Investors) and receives 19% of the rent.

 

The Public Works Loan Board financed the council’s acquisition of the remaining 81% interest in Wolsey Place.

 

As sole owner of the centre, the Council will generate £1.5m a year profit after all costs.

 

Woking Borough Council said Wolsey Place will help secure the future economic vitality of the town, with profits helping to protect local services and benefit the community.

 

Talks to sell Wolsey Place to Leo Noé’s F&C REIT for around £65m – an 8.5% yield – collapsed earlier this year.

 

Cllr John Kingsbury, Woking Borough Council’s leader of the executive, said: “The acquisition of Wolsey Place is a significant step towards underpinning the medium to long-term financial stability of the Council and strengthening the economic vitality of the town.

 

“With this key asset under our control, we hope to attract new retailers into the town and generate more jobs for local people. We will also be able to influence and shape the future development of Woking Town Centre.”

 

Cllr Richard Sharp, deputy leader of the Liberal Democrats, added: “Local councils are operating in challenging financial times and we need to seek alternative ways of generating income.

 

“This acquisition puts the Council in a much stronger position as we venture into a future where councils need to do even more with even less. By making this investment in Wolsey Place, the Council will become more financially independent and better able to protect services for residents and future generations.”

 

Jones Lang LaSalle advised I.M. Properties.

 

James Findlater at Jones Lang LaSalle, said:  “The sale is a strategic move for IM Properties who are recycling their equity into core assets.  Woking Borough Council was able to take advantage of its access to low borrowing costs to fund the purchase which allowed them to compete with private sector investors.

 

“They will also benefit from marriage value from joining their two ownerships.”

 

annabel.dixon@estatesgazette.com