A financial review of a recently sold development site in Peterborough has seen its value increased by £2.6 million.
The Northminster site, which has been earmarked for a nine storey apartment block containing 315 apartments, had been given a £1.5 million price tag by Peterborough City Council valuers.
But under a review of the council’s commercial assets by government backed financial experts that valuation has been increased to £4.1 million.
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The details are contained in a report to be considered by the council’s ruling cabinet on June 11 with the details coming weeks after the site was sold to Peterborough-based housing association Cross Keys Homes.
It is not clear if the new valuation was made before the sale. The amount paid by the association has not been revealed.
The site was sold after the council had invoked emergency procedures after a ‘third party’ had become involved.
A council spokesperson said: “The original land valuation was carried out some time ago.
“Since then, the valuation of the land has increased in line with market rates and due to outline planning permission and grant funding being secured on the site."
The valuation has been carried out as part of a financial review of the council’s commercial assets by the Chartered Institute of Public Finance and Accountancy (CIPFA), and which was ordered by the Government last June.
It comes as the council battles to fill a £27 million funding gap.
The development of Northminster was overseen by the Peterborough Investment Partnership (PIP), which also managed the regeneration of Fletton Quays.
According to the council report, which details Cipfra’s recommendations and progress, Cipfra has called for a review of the commercial basis for PIP ‘to establish the value of assets held by the joint venture, future capital requirements and options for realising value for the Council.’
The report states: “Cipfa are currently looking at the PIP. Two members have stepped down as directors of the PIP Board and replaced by two officers.”
The council spokesperson said: “The PIP still continues.
“The CIPFA review is mainly considering the purpose, function and structure of the PIP, it is not an investigation into individual past developments.
“However, some elements of the Fletton Quays development may be covered."