An office block in Plymouth city centre has been sold by the council for an undisclosed sum, having been deemed surplus to requirements.
The five-storey Midland House, located at the junction of Notte Street and Princess Street Ope, is the latest property to be offloaded by the council in its bid to save money and generate funds.
The building, which offers 2,656sq m of floor space, previously housed Plymouth City Council's children's services and social support department before staff were relocated. It was put up for sale in June last year and a year later, it received planning permission to be converted into 34 flats.
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The application was submitted by a property firm named Midland House (Plymouth) Ltd, established in February this year and managed by Christopher Pattison, a former deputy leader of Plymouth City Council, who served as a Labour councillor from 2000 to 2009.
Mr Pattison also holds a directorship at Midland House (Plymouth) 2025 Ltd, also set up in February, which is partly controlled by shareholder Uk Esg Investments Ltd, based in the Seychelles tax haven.
Midland House (Plymouth 2025) Ltd secured two loans in June and another in August, all backed by the Midland House property. The June loans were provided by London-based Kaisan Capital Ltd. In August, Midland House (Plymouth) 2025 Ltd took out a mortgage from London-based lender Adsum Ltd. The agreement was signed by Mr Pattison and witnessed by Plymouth businessman John Steven, reports .
Mr Pattison also serves as director of Midland House (Plymouth) Management Ltd, which was established in April this year and is controlled by Kirton Investments Ltd, situated in the Royal William Yard and operated by 70-year-old Mr Steven, who has held directorships across numerous companies and is a familiar figure in Plymouth business circles.
He previously operated the Wykeham Inns gastropub chain, which encompassed six establishments including the upmarket St Elizabeth's Hotel in Plympton. However, Wykeham Inns Ltd went into administration in 2008 owing more than £3m in debts.
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Mr Steven also managed the Dome temporarily and had ambitions to convert the Hoe building into a Hard Rock Cafe/Planet Hollywood-style establishment.
Mr Pattison also holds a directorship at property firm Tyson House Ltd, established in May this year and is controlled by Kirton Investments Ltd.
The local authority has disposed of the freehold for Midland House, which it characterised as occupying a "prime location". The structure features concrete frame construction and was purpose-built as office accommodation, incorporating ground-floor reception areas, open-plan offices on upper levels, and kitchen facilities on each floor. Solar panels are installed on the rooftop.
The council explained that the past 15 years have witnessed a substantial decline in local authority staffing levels, and through consolidating its property portfolio it has achieved considerable cost reductions. It noted that contemporary IT infrastructure means the council requires significantly less office accommodation.
Midland House requires investment to meet modern standards, according to a council spokesperson. They said: "We can confirm that Midland House was disposed of earlier this year after being declared surplus to requirements by the council.
"Our Children's Services back-office teams moved in 2023 to Ballard House, with the front-door services moving in March last year. All properties and assets require some maintenance and the move to Ballard was in response to the changing needs of the organisation with increased flexible, hybrid and home working.
"The council constantly reviews its properties and assets to ensure they provide value in meeting the needs of services to residents and help deliver priorities for the city. This involves both buying and selling properties to best meet the needs of the residents."
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The council has been seeking to sell properties to save money and generate funds. Earlier this year, it listed the historic Pounds House, in Central Park, and some surrounding land, for sale as part of its efforts to raise cash, including more than £8m to contribute towards the Armada Way regeneration.
Last year, it auctioned off the register office on the Hoe for £827,000. The site is now likely to be converted into flats.
In January, the council put the Grade II* listed 16th Century Merchant's House, in the city centre, up for sale. Additionally, the large Windsor House office development, at Derriford, has been vacated, with NHS phlebotomy services moving in as tenants.
In the meantime, the authority has recently transferred the 30-year lease of Commercial Wharf, at the Barbican, to Cattewater Harbour Commissioners (CHC) due to its inability to fund repairs. This occurred two and a half years after the council faced criticism for handing over the Barbican Landing Stage, valued at £441,469, to the same organisation as it was costing the authority £10,000 a year.