Retail warehouse could be sold at loss by council

A former discount warehouse owned by a council could be sold to an education trust at a loss.

West Suffolk Council purchased the freehold of the retail unit and car park on Anglia Lane in Bury St Edmunds for £1.74m in 2018.

The authority will vote on selling the site to Eastern Education Group, which runs West Suffolk College, on 3 November.

A report to the council's cabinet, which recommends it agrees to the sale, stated "a capital loss on this disposal will be realised".

If the deal does go ahead, West Suffolk College said the site would be used to expand its construction skills and education facilities, which could see up to 250 students and 50 teaching staff based at the site per academic year.

The authority bought the building in 2018 to use in its Western Way Development plan, which was subsequently cancelled in 2022.

The site has since been used for storage for the council and the Theatre Royal Bury St Edmunds.

According to the council's report, no other potential tenants have come forward, despite the authority committing £1.1m in 2024 to refurbish the building if a viable tenant was found.

The exact sale price being negotiated between the council and the trust has not been disclosed publicly.

The council added in its report that by selling the building it would no longer have to pay out £70,000 per year in holding costs.

Diane Hind, the cabinet member for resources at West Suffolk Council, said: "This presents a great opportunity to support West Suffolk College in expanding its teaching provision on a single site and delivers on the council's priority for sustainable growth."

A spokesperson for Eastern Education Group said: "[The site is] right next to our construction-focused, Built Environment Campus, [which] makes it a natural fit as we look to develop the work of Eastern Education Group and West Suffolk College."

Planning permission and funding from the Department for Education would need to be agreed for the sale to complete.

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