Cash-strapped Birmingham council agrees to sell McDonald’s restaurant

A string of properties have been sold since the start of last year after the Labour-run authority declared itself effectively bankrupt amid a financial crisis.

Assets have been sold through negotiations or auctions, with one significant example the Bordesley Green ‘Wheels’ site where a new stadium for Birmingham City FC is planned.

The sales have raised millions of pounds for the council, which has slashed services and hiked taxes as it struggles to recover.

Plans for more property sales were considered at a council meeting, including a McDonald’s on the corner of Meadway and Garretts Green Lane in Sheldon.

Councillors heard the sale would “contribute to the council’s financial recovery plan”.

A report said the property was subject to four ground leases expiring in September 2030.

Another document said the McDonald’s was being sold to the tenant company but further details of the sale were not included.

“It is recommended to proceed with the transaction […] to deliver a capital receipt to support the council’s financial recovery,” the report said.

It added the option of retaining the property for reuse and/or development by the council was “not supported as a viable consideration”.

“The property may become vacant at lease expiry and accrue unseen void and costs,” it said.

“The property is held within the investment portfolio but offers limited income growth potential.

“The proposed terms agreed exceed the accrued value that could be reached.”

Councillors on the property cabinet committee ultimately agreed to the freehold sale of the McDonald’s unit.