All land and property assets which are released for disposal should be fully marketed with the exception of disposals to nominated and special purchasers (see below), which can be sold by private treaty negotiation.
Disposal of land and property can be undertaken in a number of ways and it is for the vendor to determine the most appropriate sales mechanism for their asset, but potential approaches include:
• Formal Tender – where the sale is publicly advertised and tenders submitted by a given date.
• Informal or Negotiated Tender – where informal tenders are invited by a given date subject to contract. Negotiations may continue after tenders are received, with the possibility that different bidders may compete to offer the most advantageous terms. This approach enables the seller to continue to negotiate after the closing date for tenders to ensure the best possible terms and outcomes.
• Public Auction – where land is sold through an open auction, available to anyone. Sales will be publicly advertised in advance. Auctions have the advantage of being open, competitive and allow for transactions to be completed quickly.
• Private sale – where the sale of land is negotiated with one or a small number of potential buyers at a price agreed between the parties. Private sale has the advantage of being straightforward, but is likely to be appropriate only in certain circumstances (for example for smaller lots of land, where sitting tenants have rights to purchase and also farm tenants, etc.).
Disposals to Nominated Purchasers
Disposals to nominated purchasers will be considered by the vendor where this meets an identified regeneration, social or community need. All ‘off market’ disposals to nominated purchasers will be subject to an independent external valuation to determine best consideration.
Disposals to Special Purchasers
Vendors may dispose to purchasers to whom a particular asset has special value because of advantages arising from its ownership that would not be available to general purchasers in the open market. Such ‘special purchasers’ will include adjoining owners and parties with an interest in the property where a disposal will release additional, or marriage value, to be shared with the Vendor.
A single tenant who occupies more than 50% of a multi-occupied property maybe considered as a special purchaser (otherwise the property will be sold on the open market as an investment).
Wherever possible, the vendor should endeavour to keep land and property disposals simple and cost effective for both parties. For certain types of disposals, it may be necessary for the Vendor / Purchaser to impose terms which are considered necessary to protect respective interests. Such terms may include:-
• Development Obligations - Generally will only dispose of strategic development land for identified development proposals. Where appropriate, will impose obligations to commence and complete the proposed development within a reasonable timescale backed up with an option to re purchase the land.
• Development Agreements - Development agreements will be used for the disposal of strategic development sites where the principal aim of the disposal is to facilitate regeneration benefits from a particular scheme.
• Overage and claw back - Where appropriate, disposals will include provisions for securing a share of future enhanced values through the use of overage and claw back clauses.
Disposal and Planning permission
As a general principle, and in order to support the Vendor in the discharge of its statutory planning function, disposals will not normally be completed until planning permission (if required) is obtained. The Vendor will not be obliged to complete a disposal where an appeal has been lodged against a decision of the Local Planning Authority.
Prior to the marketing of land and property, the Vendor may seek planning permissions for alternative uses where this will help maximise value and where it is cost effective and expedient to do so.