Site sold for third of estimated value

Cash-strapped NHS Tayside sold off a major property in Perth for a third of its market value, the health board’s finance director has revealed.

Lindsay Bedford was pressed on the sale of the Murray Royal site for £550,000 when he appeared in front of Holyrood’s Public Audit Committee.

Labour MSP Monica Lennon said: “Is that what you expected to get for that property?”

Mr Bedford replied: “It is lower than the original estimate, from a couple of years ago.”

Pressed by Ms Lennon on what that estimate was, he said: “I think we all recognise, with all property sales, it is open to market forces.

“The Murray Royal, as with all property sales, is complex. It had a historic, grade A-listed building on it and clearly the market for picking up these types of sites, recognising the probably significant investment that developers will have to make, limits that market.”

Pushed by Ms Lennon, he confirmed the original estimate was “around about £1.5 million”.

Ms Lennon said it seemed “someone is getting a bargain”.

Papers presented to the committee outlining the board’s financial planning said that, since last December, Murray Royal and the Longcroft clinic had been sold, with the latter putting £55,000 in NHS Tayside’s coffers.

The papers added: “Four further properties are under offer and may also sell before March 2017, although it is likely that the property at Dudhope Terrace (receipt of £253,000) will slip into 2017-18.

“In total, sale proceeds in 2016-17 are expected to be in excess of £2m.”

Mr Bedford confirmed to the committee that asset sales were keeping day-to-day services running rather than paying back Scottish Government loans.

Finance director Lindsay Bedford.