Northamptonshire County Council has agreed the sale and leaseback of its new headquarters in a £64m deal.
The council has agreed to sell its One Angel Square headquarters to Canada Life Investments in an agreement lasting for 35 years.
‘We believe that this transaction is effective in leveraging the council’s assets and covenant allowing us to maximise the benefit of very competitive pricing at this point in the market,’ said leader of the council, cllr Matthew Golby.
He added: ‘The advice received is that this deal represents very good value for money for taxpayers of the county and generates more money than the construction costs of the building.
‘While this kind of deal may be less usual in the public sector the lease back arrangements being entered would be seen as standard finance practice in the private sector.’
Michael White, Canada Life Investments property investment director, said: ‘The long term rental stream is an ideal match for income annuity liabilities. It is another good example of private and public sectors working together in mutual benefit.’
Northamptonshire CC has asked for commissioners to be sent into the council as soon as possible, three weeks after communities secretary Sajid Javid announced plans of an intervention.
Photo: Flickr/Hazel Nicholson
