Shetland Islands Council (SIC) and Shetland Charitable Trust (SCT) have today (Tues) signed a landmark deal which sees the local authority acquire Shetland Leasing & Property Developments Ltd (SLAP) for just under £17.5 million.

SLAP is a property investment and development company, and has been a wholly-owned subsidiary of SCT.

It owns the 8 North Ness building leased to SIC as well as Shetland College and the NAFC Marine Centre in Scalloway.  Other assets in its portfolio include Scatsta Airport and buildings at the Greenhead in Lerwick.

The acquisition of SLAP’s portfolio, which nets an annual income of around £2 million, is a major investment for the SIC, and will also allow the Council to address a number of issues around its ongoing business, including the consolidation of Shetland’s colleges and the local authority’s own office accommodation. 

Councillor Malcolm Bell is the SIC’s Convener: “I’m delighted to see this deal reach its conclusion.  It has involved a lot of work for officers on both sides over the past months, and the benefits are significant for the people of Shetland.  The Council contends every year with reductions in its government grant, and therefore has to maximise the return from its external investments to maintain the quality of its services.  This is a rare opportunity to make a local investment which has the potential to give us significant returns for many years to come.”

Under the deal, SCT will receive a further £3.4 million in a final Gift Aid from SLAP.

Bobby Hunter, Chairman of SCT, said: “This is a deal that is mutually beneficial for both parties and is a great example of partnership working for the benefit of folk in Shetland. On behalf of Trustees I’d like to thank all those who have worked so assiduously to bring it to fruition.”

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For more information, contact Malcolm Bell on 07775 407 775 or Bobby Hunter (SCT) on 01595 744994