Sale of last Chamberhall plot cued up by Bury

The local authority’s cabinet will be asked to rubber-stamp the £200,000 disposal of around five acres to Crown Gas & Power to develop a new headquarters alongside industrial space.

In an item due before the cabinet on 15 January, officers set out the case for disposing of the last development plot at Chamberhall Business Park.

With previous efforts at a sale having floundered, a disposal to a successful local business now looks likely – with a subsidy for development on the table for the buyer.

Bury Council is the landowner, and while most of Chamberhall had been built out with some success, previous partner St Modwen had been unable to deliver on the five-acre site that represents the last plot within Bury’s landholding at the site.

As set out in the officer report, the land is part of the council’s accelerated land disposal programme, with previous attempts to sell the site in 2022 falling through.

The report goes on: “The council would like to see a diverse mix of development on the Chamber Hall site. It is felt that the town centre will benefit from greater job density offered through an office use on the site, which is easily accessible from the town centre core. An office use would bring greater economic and other benefits to Bury than an industrial use.”

The value of the site is difficult to determine, with officers recording “significant sensitivity” around valuations as market conditions change.

On the table is a “proposed transaction gives the council certainty of development at the site and insulates it from the impact of any further market volatility”

Heywood business Crown Gas & Power has expressed interest in the site, with a view to delivery of high-density office-based employment, in line with council aspirations.

The site is split into two, with the head office function proposed for one plot and industrial use on the other. Plot 1 would house a 40,000 sq ft office block, and is proposed for sale for a token £1. Plot 2, proposed to be sold for £200,000, would accommodate 25,000 sq ft of multi-let industrial space.

Set out in the report is a detailed analysis of how a notional land value of £1.825m given by CBRE is heavily caveated, with uncertainty over development costs. CBRE specifically valued the office plot at £1, given viability issues.

In addition, the smaller second parcel alone could see additional development costs of £300,000 to those previously estimated, officers report, with interest rates, BNG requirements and other factors now playing a part.

A further analysis of the site by local firm Nolan Real Estate offered up similar views to the CBRE report.

The officer report said: “This transaction will result in a subsidy under the UK Subsidy Control Regime for which the council feels there is strong justification.” This subsidy is likely to amount to between £1m and £1.6m, subject to assessment.

According to the council papers, the move would secure 250 jobs in Bury, also generating £310,000 per yar in additional business rates, while the footfall benefits to the town centre through a major office occupier’s arrival are obvious.

The completion of the sale is subject to relevant planning permissions.