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Kentigern House

Volume 501: debated on Thursday 26 November 2009

To ask the Secretary of State for Defence (a) how much is expected to be made from the sale of and (b) what the projected costs to the public purse are over the 20 year lease period of the sale and leaseback of the MoD Kentigern House site. (301958)

The property was advertised for offers in excess of £47.4 million in return for a 20 year lease in favour of the Ministry of Defence, at an initial market rent of £3.511 million per annum with annual fixed increases of 2 per cent. per annum compounded every five years. There are no other additional costs anticipated.

Offers in excess of the asking price were received but remain subject to the completion of formal legal missives and are thus regarded as commercially confidential.

To ask the Secretary of State for Defence what consultation was held with the Public and Commercial Services union prior to the decision being made to market the Kentigern House site on a sale and leaseback basis. (301959)

The proposed sale and leaseback of Kentigern House is an estate management initiative which does not threaten any jobs or affect the terms and conditions of employment of any Ministry of Defence employee or contractor.

Consequently, there was no need to formally consult with the trade unions, but, subject to commercial sensitivities, staff have been kept fully informed of progress by local management through a series of briefings discussions.