Property company owned by Harborough District Council is set to be wound up
A property company owned by Harborough District Council, which was responsible for retail properties and flats in the town, is set to be wound up.
Harborough District Commercial Services Ltd (HDCS), which was fully owned by the authority, was set up in 2019, with the objective of acquiring and managing investments.
Shortly after its formation HDCS acquired retail properties, Tesco and B&M Stores, as well as five flats above these properties.
Since these acquisitions HDCS has not acquired any further assets.
The company has renegotiated an extension to the Tesco lease and let a retail unit at The Commons to Sports Direct, which it said was not as ‘commercially advantageous’ as previous arrangements.
After recording losses of more than £800,000 over the past two years, the future of the company was discussed at a cabinet meeting of Harborough District Council on Monday June 15.
In a statement issued following the meeting, the council said: “The shareholders have agreed that the assets are to be sold and the company to be wound-up as soon as practicably possible after the assets are sold.
“The next steps will be for the company to commence marketing, via an agent, the assets for sale.
“Once sold the company will be wound-up and all residual assets transferred to the council.”