Council taking £39,000 ‘hit’ in sale of Hamilton property due to credit crunch

Nov 20 2008 by John Rowbotham, Hamilton Advertiser

MOVES by council officials to dispose of a prominent Hamilton building have been undermined by the slump in property prices.

South Lanarkshire Council are set to take a £39,000 ‘hit’ on the sale of offices at 116 Cadzow Street.

Members of the council’s estates committee were last week reminded that they had agreed in January to sell the building to James Hay Pension Trustees Ltd and Paul McGuigan for £231,500, exclusive of VAT.

Enterprise director Iain Urquhart said the purchasers were funding the acquisition partly from money received from the sale of their property at 111 Cadzow Street.

“The offer they have for their property was reduced by about 30 per cent due to the fall in the value of property in the current economic climate,” he added.

Mr Urquhart said the offer of £231,500 for 116 Cadzow Street had now been withdrawn and a revised offer of £192,500 reinstated.

The reduction in the offer price was consistent with the reduction in capital values for commercial properties.

Councillors approved the sale at the revised price subject to the approval of plans for the building’s renovation and partial demolition of a rear extension.