Brighton i360 sale to be discussed by Cabinet

The council’s Cabinet is set to discuss recommendations around a potential sale of the Brighton i360 at next week’s meeting.

Following the decision of the board of Brighton i-360 Limited to file for administration on 20 December, a prospective buyer has come forward with a bid for the attraction.

While the sale is a decision for the administrators, Interpath Advisory, they must act in the best interests of creditors. As the largest creditor, the council needs to agree to the release of the debt owed by the Brighton i360 company.

At the January meeting, Cabinet members are being asked to agree to recommendations to release the council’s security on its £51m loan debt and rolled-up interest to the potential buyer.

While the proposals set out that the council will not be repaid its loan, if agreed and the sale goes through, the council will potentially receive a future share of income from the attraction.

The final decision on the sale will be made by Interpath Advisory. If agreed, the council will work closely with them and the buyers to finalise the legal details.

Councillor Jacob Taylor, Deputy Leader and Cabinet member for Finance and City Regeneration, said: “The offer proposed is the best value we’ll get from the market.

“We worked with the i360 and their administrators for months while they explored investment and we have spoken to lots of interested buyers. But offers have not materialised and it’s only now that viable offers have been put forward., Understandably, none include a significant purchase price or taking over any outstanding debt.

“While the council is disappointed not to recoup more of taxpayers’ money, I’m pleased there is potential for the council to receive a future share of revenue.

“The revenue share will never repay the council’s loan, but it does mean that we do get some share of the i360’s income should it become profitable in future.

“I’m reassured that the prospective buyer has experience of running large scale leisure attractions and plans to get the attraction back up and running, which is crucial given its prominent location and the impact on surrounding businesses.”

The Cabinet meeting will take place on Thursday 23 January.

Read the Cabinet report on the decision of the future of the i360.

Councillor Taylor added: “I’m also asking Cabinet to agree to commission an external independent investigation to understand and learn from the original decision to loan public money to construct the Brighton i360 by a previous Administration back in 2014. 

“Investment in the i360 has come at considerable cost to the public purse, and the money should have been used to deliver other public benefits.

“It’s crucial we investigate the decision-making process at the time of agreeing the loan and learn lessons for the future.”