Cash-strapped Birmingham City Council has explained why it is set to offload a McDonald’s restaurant.

The Labour-controlled authority has been flogging off numerous properties and parcels of land since early last year as it grapples with its devastating financial meltdown.

It plans to sell a McDonald’s located at the junction of Meadway and Garretts Green Lane – saying it “offers limited income growth potential”.

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Among the high-profile sales was the Bordesley Green ‘Wheels’ site, earmarked as the potential location for Birmingham City FC’s new ground within the ambitious Sports Quarter redevelopment scheme.

However, a vast range of additional assets have also gone under the hammer through private deals or public auctions, generating substantial sums for the council as it battles to emerge from its recent chaos.

Fresh proposals for further property disposals are due to be examined at a council meeting in the coming week, featuring the Gazette Building and Court Chambers in the city centre.

The authority is also requesting approval to proceed with the freehold disposal of a McDonald’s located at the junction of Meadway and Garretts Green Lane.

Documentation reveals the property is tied to four ground leases that run until September 2030.

A separate paper confirms the McDonald’s is being purchased by the tenant firm, though specific sale details remain undisclosed.

“It is recommended to proceed with the transaction outlined in this report […] to deliver a capital receipt to support the council’s financial recovery,” the report said.

The document noted that keeping the property for potential council reuse or development was “not supported as a viable consideration”. “The property may become vacant at lease expiry and accrue unseen void and costs,” it said.

“The property is held within the investment portfolio but offers limited income growth potential.

“The proposed terms agreed exceed the accrued value that could be reached.”

The relevant committee has been advised to approve the unconditional disposal of the property at next week’s meeting.