Deadline set for airport sale as chiefs ‘prudently’ prepare ‘plan B’
Cheltenham Borough Council and Gloucester City Council are in the process of selling the airport they jointly own
January 31 is the deadline set to complete the sale of Gloucestershire Airport as council chiefs “prudently” consider a plan B in case the deal falls through.
Cheltenham Borough Council and Gloucester City Council are in the process of selling the airport they jointly own in Staverton to their preferred bidder Horizon Aero Group.
Council chiefs announced in July that the 375-acre site, which includes two thriving business parks and planning consent for an additional 30,000 square metres of business space, who they would sell the site to.
However, the completion of the sale, which has been agreed to be for more than the £25m asking price, has faced delays and there has been speculation the deal may be in trouble.
Council chiefs say they are “very confident” the deal will go through and have maintained regular discussions with the buyers over the festive season.
They told councillors at the overview and scrutiny committee meetin on January 5 that they are now working with the buyer on a “backstop” of January 31 to complete the sale.
Chairman Andrew Gravells (C, Abbeydale) asked what was responsible for the delays.
“Are there very many stumbling blocks, several, not many at all, just one main one? What’s the score?”
Andrew Hearne, head of place at the council, told the meeting that they had a “very productive” two hour joint meeting with the buyers and their agents on November 27 and they have been kept informed wih regular updates.
He said it was a “very open” and “transparent” session which reassured him.
“The buyers themselves were very open about some of the noise in the media,” he said.
“They were very quick to dispel some of that as well. They updated us on their funding position and gave reassurance as to where they are seeking their funding from.
“I have to say, at this point, while I can’t give details of where that funding is coming from, because that would be a breach of sensitive information, there are a number of different funders the buyer is engaging in.”
He said this is to “largely” provide contingency within their investment parameters so they have a platform of investment to draw on.
“It comes down to them to choose which one is best for them, but I was very reassured by the conversation and some of the information I was seeing physically in that meeting.”
Mr Hearne said he has since had three meetings with the buyers to make sure progress is being made and they agreed to continue discussions over the festive period.
“I’ve been assured there are still positive discussions taking place with the potential investors.
“The buyer has also sent a rather long but confident email to ourselves and to Cheltenham setting out where they are with the current discussions.”
He said they have agreed a “backstop” to complete the transaction by the end of January.
“That is the date we are working to, that is the date they are working to and it is the date I’m confident, at this point, that they will continue to achieve.
“I have no reason to believe at this point that they are deviating from that.”
Cllr Gravells asked what would happen if the deadline wasn’t met.
“Would the City and Cheltenham just walk away?”
Mr Hearne said not and he wanted to see “pressure put in the right places”.
“We need to keep the pace. Which is what we’ve been saying to the buyer over the Christmas period.
“We don’t want lag, which is why transparency is key.”
He said if the buyers feel there is any risk to their funding position over the next two weeks they should inform the councils as soon as possible.
“We and Cheltenham need to know about it on the day rather than hearing about it on January 31 so that we can make a prudent decision,” he said.
“We are prudently looking at alternative options but that’s not because we believe there is risk but that it is sensible to do so.
“It would be irresponsible of us to not start looking at what a plan B might look like.”
Mr Hearne reiterated that he had no reason to believe the deal would not go ahead.
And he is very confident in the information and transparency the buyers are providing him with.