HEREFORDSHIRE Council leaders have agreed in principle to spend £4.5m on buying Maylord Shopping Centre in Hereford.

Council officers say the purchase would give them the opportunity to develop the site in line with their plans to grow the county’s economy.

They expect the rental income from the property to cover maintenance and running costs, leaving a surplus cash return for the council to meet its key priorities.

According to council documents the cost of purchasing the premises and paying stamp duty amounts to £4.25m while the purchasing costs and legal fees amount to £200,000 and £50,000 respectively.

The council’s decision report says it will need an agent to manage the site who would provide a fully managed service dealing with the rental and the maintenance requirements.

They say an agent would provide them with the expertise for managing the commercial elements of the site.

They believe the management company’s fees would be covered by the rental income.

However, a number of councillors are concerned about purchasing properties at such an uncertain time for the economy when the valuation at present and immediate future is questionable.

The decision to purchase the freehold premises is subject to the chief finance officer being satisfied that appropriate heads of terms have been agreed, due diligence has been completed and the purchase provides value for money.

The director economy and place, in consultation with the cabinet member commissioning, procurement and assets, has been authorised to complete the acquisition and to take all operational decisions necessary to appoint a management company.