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Dundee land and property sell-off nets authority £10 million

Development sites have fetched the council as much as £1 million
Development sites have fetched the council as much as £1 million

More than 100 buildings and spaces in public ownership have been sold off in Dundee in the past four years, earning the city council close to £10 million.

A number of redundant plots of land and buildings have been sold to private developers for six figure sums, including a development site at Kings Cross Road, which sold for £1 million last year.

The total amount gained from the 45 sales made since 2014/15 is £9.94 million.

Some properties, such as those that have become derelict, or small unused areas of land, have been sold for as little as £1 to encourage development or allow for community ownership.

Dundee City Council said it “closely monitors” surplus property with income derived from sales reinvested in council housing or general services.

However, councillor Kevin Keenan, leader of the Dundee Labour group, questioned the wisdom of some of the sales.

He said: “These pieces of land, in my opinion, have been sold far too cheaply and it may well have been better to hold on to them as opposed to accepting the offer on the table at the time.”

Some of the other highest sales included Unit K and Unit A at Claverhouse Industrial Estate, which went for £780,000 and £575,000 respectively.

A site at Pearce Avenue, in West Pitkerro Industrial Estate, also went for £570,000 while the former Eastern Primary School was sold off for £500,000.

John O’Connell, chief executive of the TaxPayers’ Alliance said it was right for councils to sell assets if they aren’t being used.

He said: “Councils should not be in the business of owning land, property or shares.

“The lack of profit motive behind investments means that the public sector will always be inferior to the private, so it is very encouraging that Dundee are selling land off.”

Bill Bowman, Scottish Conservative MSP for the north-east region, added: “If there is land or property that is deemed surplus to requirements, then I don’t think anyone would object to sell-offs.

“However, Dundee City Council has a duty to ensure best value for the taxpayer in any transaction.

“The council also needs to be transparent about what happens to this income.

“The public may wish to know how much is reinvested in the capital spending programme and how much goes on servicing debt.”

A Dundee City Council spokesman said: “The council closely monitors property which is surplus to requirements.

“We also operate a community asset transfer process, governed by the Community Empowerment Act, that encourages and enables the transfer of assets from Dundee City Council to certain community organisations.

“If properties sold were part of the housing revenue account, any income received would be reinvested into council housing services. Income from any other type of property sold would be reinvested in general council services.”