A huge range of properties and land have been sold since the start of last year after the Labour-run authority declared itself effectively bankrupt in September 2023.
More property sales were given the green light at a meeting this week, including one that involves Alpha Tower in Suffolk Street Queensway.
It is one of the tallest buildings in Birmingham and was given Grade II Listed status in 2014.
Alpha Tower in Birmingham city centre. From Google Maps.
The development was originally conceived with the aim of creating a HQ for an independent television company and is now described as a place for “dynamic and ambitious businesses”.
With the property being owned freehold by the council, the relevant council committee were being recommended to proceed with the proposed sale to ‘assist with the local authority’s financial recovery’.
Speaking at the meeting, Labour cabinet member for finance Karen McCarthy said: “This is the one that makes me go ‘do we have to?’
“It’s an iconic building […] but it’s very clearly in scope.”
Birmingham City Council House on Tuesday, September 9. Credit: Alexander Brock.
Conservative councillor Robert Alden added: “Being blunt, I’d rather we sold this than a community library so given where the council is, this is a sensible thing to be looking at.”
Previously responding to the plans, ward councillor Albert Bore said he was “sorry that the Birmingham City Council is giving up the freehold of buildings such as Alpha Tower”.
But he continued that he accepted the “financial necessity for doing so”.
On the option of doing nothing, the council said it is “under no obligation to proceed with the proposal and would suffer no reputational consequences if it did not proceed”.
However, it continued: “The negotiated capital receipt would not be realised at this time and would not be available to assist with delivery of the council’s financial recovery plan, with there being no guarantee of a future opportunity.”
The property is currently subject to a long lease to the current leaseholder, with the council saying it would be unlikely that it could reuse or develop the tower instead of selling it.
This week’s meeting heard that the capital receipt from the sale is “significant” and therefore “more attractive” than continuing ongoing ground rent.