Shropshire Council considers lease and rent-back scheme for county car parks
Shropshire Council will consider a plan to sell off leaseholds to council-owned car parks to raise money.
The proposed “income strip” deals would see the council receive an upfront payment for the sale of the lease, then rent back the car park over a fixed term.
If approved, the scheme could raise around £34 million to close a gap in the council’s capital receipts programme, which is facing a shortfall despite identifying potential asset sales of around £19m this year.
The programme includes transformational costs to the council, such as redundancy payments to staff and payments to consultants.
A document set to go before full council later this month shows a typical lease length of up to 125 years, with an option to buy the lease back after 50 years, but options could vary according to market demand.
“The selected car parks are crucial for local infrastructure, supporting economic activity, tourism, and public services,” the report says.
