The grant of a new 10-year lease of Kings Ash House to the NHS on largely identical terms to the existing lease. 

To secure renewal of the lease to retain the Council’s tenant and ensure a continuation of the income.

The alternative here is to refuse renewal of the lease and seek vacant possession upon lease expiry.  The consequential void period and costs associated renders this option unviable for the Council.  

31 March 2026.

The Torbay and South Devon NHS Foundation Trust (the NHS) occupy Kings Ash House, an office block owned by Torbay Council located on the outskirts of Paignton.  The original lease is a 10-year agreement expiring 16 June 2026. 

The NHS now wish to enter into a new 10-year agreement with break at year 5.  Negotiations have concluded with the rent to remain as per the passing rent under the existing lease, with all other terms unchanged.  For internal accounting purposes the NHS need to conclude the transaction by 31 March 2026.

In granting a new lease to the NHS, the Council is securing a profitable income from the asset for a further 10 years, at a time when the market is challenging for the office sector. 

Furthermore, the lease aligns with the strategic partnership between the Council and the NHS, with the grant of a new lease to indirectly provide community wide benefits to Torbay.

None.