Former care home sold to The Peterborough School has re-sale clause attached

Greenwood House ENGEMN00120120629153307
Greenwood House ENGEMN00120120629153307
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A disused care home which was sold for £400,000 included a re-sale clause which could earn Peterborough City Council a further profit.

The council sold Greenwood House to The Peterborough School in nearby Thorpe Road last month so the school could turn the site into staff car parking and a maintenance area.

The council refused at the time to say how much money it had received for the site as it claimed it was “commercially confidential.”

The council has since revealed the sale price, but it added that if the property was sold by the school in the next 10 years then the council would be in line for any share in profit the school makes.

The council says the valuation of the property was carried out by Barker Storey Matthews, the council’s 
appointed expert chartered surveyors.

The valuation came from hypothetically assuming that the site was to be sold for residential redevelopment.

Any offers received would then be measured against this value.

A council spokesman said the site was bought at full value and that a re-sale clause was included “based on hope rather than known facts.”

He added: “We received three other offers which were all less than the sale price achieved.”

Labour and Cooperative Councillor Ed Murphy said £400,000 was not in his opinion market value and that pressure on the council may have forced it to put in the re-sale clause.

Council leader Councillor Marco Cereste said the clause was standard practice.

He added: “Greenwood House was put on the open market and the highest offer was substantially higher than the next bid.”

Greenwood House and 
fellow care home Welland House in Dogsthorpe were controversially closed down in 2012.