Council to sell stake in Lufton 2000 to Abbey Manor Developments

The council entered into a joint venture with Abbey Manor Developments Ltd in 1999, acquiring land at Lufton Trading Estate with a view to redeveloping the area as a commercial hub.

Since the beginning of Lufton 2000, two-thirds of the land has been sold, leaving around 13 acres available to develop.

The council’s district executive committee has now voted to sell its 50 per cent stake in the remaining land, giving the Yeovil-based developer full control over how the rest of the site is built out over the next two decades.

The plot lies at the north-western corner of the estate off George Smith Way.

Robert Orrett, the council’s commercial property, land and development manager, said in a report to the committee: “Based on past rates of progress, this residual land may take 10 to 15 years to conclude disposal of all areas. There is no current live interest.

“The remaining gross area owned by the joint venture is 18.48 acres. However, there is significantly less land area in ‘net’ terms due to areas of woodland, ponds, roads for adoption or similar.

“The recommended option will deliver a significant capital receipt to the council that has not been budgeted for. It is understood this would be completed and received during the current financial year.

“The receipt would be available to use to fund the existing capital programme and could replace external borrowing.”

The council has not revealed how much Abbey Manor Developments has offered the site, citing commercial sensitivity.

Cllr John Clark, portfolio holder for economic development, said: “The valuation judgement from our expert is that the price is fair.

“The point of the joint venture wasn’t an economic development interest; it was a commercial investment point, and the motives of Abbey Manor without us will be just the same as a commercial developer.

“Any use of the site would have to fit in with planning regulations and policies under the Local Plan.”