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SALFORD CITY COUNCIL PAYS OVER £2MILLION RENT FOR EMPTY OFFICES OWNED BY LEGAL AND GENERAL
 

Star date: 6th March 2017

SALFORD COUNCIL PAYS OVER £2MILLION RENT FOR ONE NEW BAILEY WHILE SHUTTING DISABLED CHILDREN'S HOME

As Salford City Council proposes to save £300,000 by closing The Grange, the city's only residential home for disabled children, it has paid out over £2million in rent for empty offices at New Bailey owned by the Legal and General Pension Fund.

Full details here...


One New Bailey Salford Salford Red Devils mascot signs petition to Save The Grange Save the Grange protest outisde Salford Civic Centre
click image to enlarge

Today the Salford Star can reveal that Salford Council has been forking out over £2million for empty offices at One New Bailey, while proposing to close The Grange, the city's only residential home for disabled children to save an estimated £300,000.

Last December, Salford City Council made a payment of £686,625 to the Legal and General Pension Fund for 'rent' which we kind of guessed was to underwrite leases at One New Bailey, the shiny new office block near Salford Central Station (see here). The block currently has two empty floors which it has failed to rent out.

After a Freedom of Information response, the Council has now confirmed that this £686,625 payment was just "the quarterly rent (inclusive of VAT) for offices at One New Bailey for the period 25th December 2016 to the 24th March 2017".

Other rental payments to Legal and General Pension Fund for the same amount were also made in July 2016 and September 2016, making a grand total, so far, of £2,059,875. Plus a further payment of £40,096 for insurance.

One New Bailey, according to its website, is "owned and funded by Legal and General". The Legal and General Pension Property Fund in January boasted assets of £836.5million (see here).*

Last month the Council agreed proposals to shut The Grange, to save £300,000, citing a lack of finance, despite ongoing protests and a campaign to keep it open (see previous Salford Star articles Ė click here and click here)**. 

Residents might want to ask why Salford City Council is picking up the bill for the deserted, privately owned offices, which has so far cost over £2million of public money while cuts are being made to public services.


* The Legal and General is the major partner in the English Cities Fund (ECf) which is developing New Bailey and Chapel Street. For more information see previous Salford Star article - Not A Penny Given Back To The Community From ECf Redevelopment - click here

** To sign the petition to Save The Grange - click here


See also previous Salford Star article - Homeless Plight in the Midst of £650million Developments - click here



Jimbo wrote
at 3:24:43 AM on Tuesday, March 7, 2017
I am a regular critic of your site, and feel your a bunch of socialists who haven't realised the world has moved on since 1974. However this story is shocking. A prime piece of commercial land, opposite Spinningfields and the council feel the need to do a deal where the underwrite the rent? Any idiot could tell you that developers in/around Manchester would fight both and nail for space like this so close to spinningfields. This deal shows appalling naivety on behave os Salford. And the block they built is hardly inspirational either

Mary Ferrer wrote
at 1:01:07 AM on Tuesday, March 7, 2017
With all the cuts from the Tory government,you would think Salford council would sit down and work out the best way forward for the people of Salford. But it sounds like I am living in cloud cokoo land.You would think these people who are running our city would work out that paying vast amounts of money for an empty building was a wee bit over the top,even for the idiots who are running our city into the ground. But it appears the inmates are running the madhouse. But it will continue until the people of Salford get off their backsides,make that short trip to the polling station and get these insane people out of the civic.

Labour out wrote
at 3:08:51 PM on Monday, March 6, 2017
This Labour Ruben council are a disgrace spending Tax payers money on rubbish, come the local elections I won't be voting the shower of Sh*t

down but not out wrote
at 12:32:23 PM on Monday, March 6, 2017
Yes can anyone at Salford City Council explain why so much of our money is being ploughed into a half empty building and who for while our most vulnerable are being left out in the cold? Answers on a postage stamp please!!!

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