Councillors have approved the sale of a Perth Common Good building to the developers of Perth’s 1-5 High Street. The move for the High Street site was approved despite a public consultation where the majority opposed the sale.
Background of the Sale
According to a council report, Lock Terrace told Perth and Kinross Council its hotel development was dependent upon having a laundry and staff facilities in a nearby building and identified the vacant part of the Navigate building on George Inn Lane as its preferred choice. Two councillors sought to defer the sale until the garage building had gone on the open market but were told it was not within the council’s gift to do so as Lock Terrace would hold the vehicular access rights to the property.
Public Consultation Results
The majority of the 39 responses to the recent public consultation on the proposed disposal of the Perth Common Good building opposed the sale. One Perth resident slammed the whole situation as “disgraceful”. A Perth-based economist, who responded, said: “Ultimately, the council is proposing to pay significantly more to give a public asset away than it would cost to keep it. This is not regeneration; it is a wealth transfer from the Perth Common Good Fund to a private developer, financed by public borrowing, at a net cost to taxpayers that exceeds the operating savings claimed as justification by a factor of more than three to one.”
Committee Decision
At a meeting of the Perth Common Good Fund Committee on Monday, June 22, councillors were recommended to support The Heiton hotel development at 1-5 High Street by selling the southernmost section and part of the lower storey of the middle section of the Navigate building, on George Inn Lane (behind 1-5 High Street) to Lock Terrace. The recommendation came after councillors nominated Lock Terrace as the developer of 1-5 High Street in December 2025 and Lock Terrace had its plans approved to convert PKC’s former Perth chambers and offices into a hotel in November 2025.
Debate on Best Value
At Monday’s meeting, Perth City Centre ward councillor Chris Ahern asked why the garage could not go on the open market. Jonathan Janes of PKC’s Estates said: “As a council, we don’t have to market a property for sale; if we can find a use for it that we think is in the council’s best interests, we can do a sale - providing we comply with disposal of land regulations, which in this case we are.” Bailie Ahern argued the councillors were trustees of Perth Common Good Fund, which owns the building, and trustees “must get best value” for its building. The Conservative councillor added: “By making a decision with the people that want to buy it, is not making best value. Garages and parking spaces in Perth city centre are at a premium and you would got a lot more than we’re actually asking Lock Terrace for.”
Market Value and Offers
According to the report, the property’s market value is currently around £15,000 to £18,000. On Monday, councillors were told Lock Terrace had offered £20,000. Mr Janes then confirmed – when questioned further by Cllr Chan - there had been a higher offer from an interested party in using the property for storage. Mr Janes said: “We responded back to the solicitor with our view, in terms of not considering their offer due to the scheme that was ongoing with 1-5 High Street and Lock Terrace.” Council officers stressed the sale of the building would not go ahead if the hotel development did not go ahead.
Conditions and Final Vote
Mr Janes said: “This disposal is to support the 1-5 High St hotel development scheme, which is obviously seen as a vital cog in the night lift and economic development perspective of the city centre.” Officers confirmed to Lib Dem councillor Liz Barrett that both 1-5 High Street and the property on George Inn Lane would remain within the ownership of Perth Common Good until the entire hotel development was completed. The committee’s convener Depute Provost Andrew Parrott moved to approve the sale to Lock Terrace. It was seconded by his SNP colleague and council leader Eric Drysdale, who said he had “listened very carefully to the arguments”. Cllr Chan and Bailie Ahern tabled to defer the sale and put the property on the open market to achieve best value but PKC’s legal team deemed the proposal “incompetent”. The committee agreed the sale. Bailie Ahern voiced his dissent to the decision.
