Decision details

Unit 10 Pioneer Court, Alderman Best Way, Morton Palms, Darlington

Decision Maker: Assistant Director Economic Growth

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

We have been asked to approve a 10 year sub lease by the solicitors representing the ground leaseholder of Unit 10 Pioneer Court, Hagen Developments Limited
The proposal is for them to grant a lease to Priory Education Services Limited (Company House reg no: 062448800) whose registered company address is 80 Hammersmith Road, London.
The lease will be for a term of 10 years on FRI Terms for a rent of £60,750pa although the tenant is being granted an initial six month rent free period. Bank references are not required due to the Council only receiving a nominal rent of one peppercorn.
The use is office services use class E (formerly use class B1 of the Town and Country (Use classes) Planning Order 1987).
The company’s business is providing specialist secondary education and care to young people who have emotional behavioural difficulties, Autistic Spectrum disorders, Asperger’s Syndrome and Dyslexia and the premises will be used as administration offices.
Trade references not required.

The Companies House check has not revealed anything to be concerned about.
The alienation clause in the lease between The Council and City & Northern (Now Hagen Developments) does not refer to any under-lessee being a good a proper person or company, just that the Council’s consent cannot be unreasonably withheld or delayed.

In light of the checks Hagen Developments will have commissioned, to ensure their direct under tenant is of substantial covenant and standing, we have no grounds for withholding our consent. Priory Education Services Limited will not be paying rent to the Council. They will be paying rent to Hagen Developments Limited.
The Council’s legal and surveyors fees of £400 are being paid by Hagen Developments Ltd for processing this approval.

Decision:

To approve the proposed sub underlease of unit 10 Pioneer Court to Priory Education Services Limited

Reasons for the Decision
Enables a vacant unit to be occupied providing new jobs to Darlington

Alternative options considered:

None

Publication date: 09/12/2021

Date of decision: 25/11/2021