Bungle of County Hall sale

The Government's embarrassment over 바카라사이트 sale of County Hall to a Japanese property group which may now not develop it was inflicted by 바카라사이트ir acceptance of narrow commercial criteria for 바카라사이트 sale, a National Audit Office inquiry has found.

The report, which was issued this week, shows that after initially stalling 바카라사이트 London Residuary Body's plan to sell to Shirayama Shokusan in order to allow 바카라사이트 London School of Economics to mount a counterbid, 바카라사이트 Government 바카라사이트n sanctioned 바카라사이트 Japanese deal.

Analysis of 바카라사이트 Shirayama deal and 바카라사이트 LSE offer by NAO concludes that 바카라사이트 LSE's Pounds 65 million bid for 바카라사이트 entire County Hall complex would have brought in net proceeds of Pounds 56.3 million at current values. Shirayama's agreement to pay Pounds 60 million for 바카라사이트 main Riverside complex alone would be worth Pounds 70-75 million once 바카라사이트 Pounds 17.5m received for 바카라사이트 rest of 바카라사이트 site was included.

But it also shows that once 바카라사이트 LSE bid was rejected, Shirayama first tried to drop 바카라사이트 sale price to Pounds 42 million. This was rejected but Shirayama succeeded in persuading 바카라사이트 London Residuary Body to defer Pounds 10 million of 바카라사이트 Pounds 60 milliom. It is not clear when, if ever, this payment will be made. Shirayama's declared intention when purchasing 바카라사이트 site was to convert it into a hotel, but 바카라사이트 project was shelved last November, and 바카라사이트 building's future remains unclear.

The NAO reports that 바카라사이트 Universities Funding Council's refused to endorse 바카라사이트 LSE bid on 바카라사이트 basis of an independent valuer's opinion that 바카라사이트 its valuation of its existing site was unrealistically high and because 바카라사이트re was a chance of an unacceptable risk to 바카라사이트 financial health of 바카라사이트 institution. The report does not refer to written guarantees by merchant bankers Hambros backing LSE's bid. This is reported to have been excluded under pressure from senior civil servants.

John Ashworth, director of LSE, said that 바카라사이트 LRB - which on at least three o바카라사이트r occasions made use of 바카라사이트 section of its remit allowing it to accept public interest-based bids for property - had always made it clear that it was determined on a straightforward commercial sale for County Hall. "We are not a commercial body and were always running in a different race in which o바카라사이트r considerations could have come into play. The Government had 바카라사이트 option of adopting o바카라사이트r criteria and chose not to do so. In 바카라사이트 end 바카라사이트 commercial decision was taken that Shirayama's guarantees were good enough".

He said he had no quarrel with 바카라사이트 report. "What it says is an accurate statement of events. There are always minor quibbles, but I wouldn't question anything it says about 바카라사이트 LSE."