Nursery sites may be sold for price of one-bed flat

A LARGE two-storey, 1930s building surrounded by open space could be sold off for the same price as a two-bedroom flat in Granton, while a building in the Old Town could be sold for the price of a one-bed flat in Leith, as part of council plans to close two nurseries.

Concerns have been raised over the proposals to sell off the two under-threat city nurseries for "very low" price tags if councillors vote to close them. Council bosses say both Princess Elizabeth and High School Yards nurseries would be placed on the open market "as soon as the decision-making process is complete", if it is agreed they should be closed.

Critics worry that the respective 150,000 and 100,000 price tags will not provide the council or taxpayers with "good value for money".

Steve Burgess, Green councillor for the Southside and Newington ward, which takes in Princess Elizabeth Nursery in Prestonfield, said: "I was surprised at the figures put on the properties because they seem very low.

"If the nurseries close - and I hope they don't - I would want to see evidence that these are the correct valuations.

"Whatever happens, we need to be getting value for money from any property that's sold."

The council says that holding on to the properties would cost a total of 1400 per month in security costs, but that these costs would be "kept to a minimum" by putting the nurseries on the market straight away.

It also says that the money raised through the sale of the properties would be used "for the purpose of developing and improving other parts of the early years estate".

In a report written by education director Gillian Tee following a six-week public consultation, she said: "City development has advised that the estimate of the likely capital receipt is based on what they think a property will sell for on the open market.

"It is envisaged that Princess Elizabeth would attract interest from people wanting to convert the building to residential use or demolish the building and redevelop the site.

"Securing funding for projects of this kind is still proving difficult which has a depressing effect on values. This is the reason for the perceived low valuation."

Property expert Alasdair Humphery, managing director at Jones Lang LaSalle in Scotland, said: "The development market at the moment is really very flat. Banks aren't supporting buyers so it has to be people who are well funded or cash buyers who will buy cheap with a view to making a longer-term profit.

"Not rushing into a sale might yield greater profit in the future, but if that money is required now and can be invested elsewhere in the council then that is one of the things which will need to be taken into consideration."Buyers will, however, be thin on the ground."

The council wants to close the under-occupied nurseries to save nearly 200,000 a year.

A council spokeswoman said: "We would only sell if the price is right, otherwise we would hold on to sites.

"Valuations of both nurseries were looked at very carefully and are based on what the sites could be used for, along with the appropriate market rate."