Herefordshire Council Purchases Maylord Shopping Centre

[Hereford Voice]

The purchase will enable the council to safeguard and decide the destiny of this facility in the heart of Hereford

Herefordshire Council has today (Friday 12 June 2020) purchased the leasehold interest and a section of additional freehold in the Maylord shopping centre in Hereford.

The council had retained the freehold of most the four-acre site since it was developed in the late 1980s. Acquiring the site allows the council to take full control and decide the future of the facility.Councillor Gemma Davies, Cabinet member for commissioning procurement and assets, explains the reasons why the purchase of Maylord shopping centre is so important:

Quote

 

“We have a vision for our county, as set out in our County Plan, where we encourage and strengthen our communities, support local businesses and the economy, and ensure we make space for arts and culture. The purchase of the Maylord shopping centre absolutely supports this.

“We view the future of this area, which is in the heart of our city, as so much more than a retail outlet. We will now have the ability to create a vibrant place where people will want to visit, live, work and do business. We want to open the door of opportunity to local businesses, individuals and the wider community, providing them with a central space and shopfront that they wouldn’t previously have had access to.

“We are sensitive to the impact Covid-19 is having on businesses and livelihoods. This allows us to think differently about the opportunities we are able to offer so we can build back better, in a way that supports the whole county. This is now a community asset and we can only make best use of the all the space available if we involve our communities and let them help shape its future.”

 

A management company will fully manage the site including rental and maintenance requirements. This provides the expertise for managing the site’s running and doesn’t require additional council resource. The fees of the management company will be covered by rental income

[Comprowise]

The council has put out a you tube post asking what to do with Maylords because it purchased the complex without a plan. I do hope somebody is challenging the investment decision because this situation at best is gross incompetence and at worst smells very fishy.

[twowheelsgood]

But ... Cllr Davies is saying 'we have a vision' in the PR fluff piece above. If that isn't the case, why is she saying the contrary?

"The fees of the management company will be covered by rental income" - that's either outrageous management fees or pitiful income. Either way, passing it off as one covering the other is hardly presenting a good business case. She's basically saying it doesn't make any money. What about servicing the cost of the capital borrowing? Is that covered by the rental income? Insurance, rates, cleaning, landlords costs etc?

I did have high hopes for this Council but sadly, they are shaping up to be no better than previous incumbents - no coincidence the Officers are still the same perhaps? The ones really running the Council it seems, unelected and unaccountable.