South Oxfordshire council is set to make £10m by exercising its pre-emption right at the Orchard shopping centre.
The move to take over and then sell the 230,000 sq ft Didcot scheme, rather than grant a long lease to Taylor Woodrow, will leave the scheme’s developer red faced.
Taywood had expected the council to grant it a 150-year lease on the centre, so appointed Vail Williams in February to market it quietly, with a £46m price tag. But its plans may have backfired as the council has lined up a £50m sale. A large property company and a fund have both been mooted as buyers, with Land Securities, British Land and Helical Bar all named.
Marie Ainsworth, strategic director for planning and building control at the council, said: “Didcot has been a growth town and we would like to be able to select who the next partner is going to be, rather than leave it to Taylor Woodrow. If we buy it, then we can decide.”
The council is able to buy Taywood out for about £40m, allowing it to make a large profit on the sale. Under the terms of the development agreement, South Oxon has to complete its sale by April 5. Taylor Woodrow said it was unable to comment.
References: EGi News 04/04/05
