Aberdeen City Council is exploring a sale of its portfolio of industrial and development land, valued at £45m.
The council is seeking offers for the entire portfolio of leases as well as individual sites as it seeks to plug funding gaps and drive forward new city centre regeneration.
It proposed a soft market test last year, driven by a large funding gap and the anticipated investment required to meet new energy legislation, according to council documents.
The portfolio comprises some 130 ground leases on development land, 90 industrial units, 15 offices and 75 shops, which generate an estimated annual income of £5m.
The ground leases provide £3m in rents, with £1.8m coming from industrials, £550,000 from shops and £250,000 from offices.
The portfolio does not include the council’s major strategic sites such as its city shopping centres, The Event Complex Aberdeen, and the new development at Marischal Square.
Aberdeen City Council highlighted the opportunity for investors looking for longer-term returns which may be interested in working with existing tenants within the portfolio or develop new opportunities.
A spokesman said: “We are soft market testing to influence future policy in relation to their retention or with a view to selling to partners and to look at any other alternatives that may come from the market.”
Last year the council said it would evaluate its property and estates portfolio inherited from the former district and regional councils.
In the council’s 2019 budget it identified a £41.2m funding shortfall, through reduced grants, increasing costs and rising demand. It has sought cost savings through reductions across roads maintenance, grounds maintenance, and youth work.
Aberdeen City Council owns around 1,200 assets, including 113 factories, 336 ground leases, 91 shops and five museums and galleries.
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