BUSINESSES on Hereford's Rotherwas Industrial Estate are facing an uncertain future as the council sells off land at open auction to raise money.

It is feared that international companies could buy the land, which is being auctioned off in London, and out-bid local companies before changing lease terms.

Deborah Gittoes, managing director of Arctic Circle Limited, have been based at Rotherwas for the last 32 years and fear that Herefordshire Council has not investigated all options before selling land on the open market.

"I am dismayed that as a leaseholder of land from the council, that they did not find it necessary to send a letter out informing tenets of their impending plans," said Mrs Gittoes.

"It was only when the first auction of land was arranged that companies TRP and Hereford Industrial found out about these plans.

"TRP apparently asked the council if they could buy the land but were told for ‘transparency’ they would need to go to auction (in London). TRP were fortunate in the fact that they were successful in purchasing the land they have their premises on albeit for a sum far greater than expected. The next auction is imminent."

The freehold lease of units on Netherwood Road and one in Chapel Road are listed for national auction later this month by Lambert Smith Hampton in Piccadilly, London.

Mrs Gittoes fears that the land her businesses occupies will be next for auction and she might not be able to raise the capital at such short notice.

"At the time of building our premises at Rotherwas we were keen to buy the land as well," she said.

"But at that time Herefordshire Council did not want to sell explaining that they wanted to keep the asset (over 20 years ago).

"Since then, of course, we hear that the council are in financial difficulty and obviously they see the selling off Rotherwas land as a way of recouping some earnings.

"We are now in the position of not knowing when we will get a new landlord or what our future land lease costs will be.

"Many others are in the same position. We have no control over it and it's quite concerning that the council is selling of its assets as it will have less assets to borrow against in the future."

Cllr Harry Bramer, Herefordshire Council’s cabinet member for contracts and assets, said that a national auction was considered the best option in order to make the most money from the land.

He said: “The decision was taken to dispose of this portfolio in accordance with the council’s Corporate Disposal Strategy, because the rental income was low and the significant staff time required to manage the estates meant the investment was not providing value for money.

“We understand that the negotiation of direct sales was attractive for existing tenants, some of whom have already bought freeholds.

"However, a competitive and transparent public auction was considered the most appropriate method to ensure that sales achieve the best possible value for Herefordshire taxpayers.

“We notify all affected tenants once their property has been identified for sale, giving them details of the date and auctioneer to allow them the opportunity to take part in the bidding process if they wish.”