SELLING off the 1,000 homes site to possibly become a data centre will be the council’s ‘single biggest beneficial transaction ever seen’ to help fill financial woes.

A damning report revealed the cash-strapped local authority had to spend at least £250m to build the new homes at the former Akzo Nobel site but did not have a ‘clear idea’ how it would fund this.

The southern part of the brownfield site in Wexham Road was purchased from international real estate company Panattoni, which secured planning permission in 2020 to build up to 1,000 homes (25 per cent affordable) to the south of the site and a data centre to the north, for £38m earlier this year.

The council bought the site to provide more social and affordable homes but given it needs to sell off up to £600m of its property and land to reduce its £760m borrowing debt, it can no longer commit to the project.

READ MORE: Slough Council to sell off 1,000 home former Akzo Nobel site

Just by holding the undeveloped former Akzo Nobel site, which is producing no income, it is still costing the council £4.1m a year in minimum revenue provision – money set aside in the revenue budget to pay off borrowing – and interest.

The site will be “briskly” sold off to the highest bidder, who remains confidential, and will build a data centre instead of new homes, subject to planning consent.

A price tag is unknown, but council leader James Swindlehurst (Lab: Cippenham Green) hinted the sale makes about “a quarter” of its capitalisation direction requirement that will “move the council more rapidly to a better financial position”.

“[The offer] is probably the single biggest beneficial transaction I’ve ever seen,” he said at a special cabinet meeting on Wednesday, November 2.

READ MORE: Datchet residents call for home developments to pause

Cllr Swindlehurst added: “Clearly, this was never a funded scheme, and the council bought the site with aspirations for residential but haven’t got any of the plans ready to financially deliver it and given our given financial situation, we clearly not going to be in a position deliver it for residential.”

Conservative leader Dexter Smith (Colnbrook with Poyle) said he was cautious of the purchase, adding: “If something sounds too good to be true, then it probably is”.

Meanwhile, Cllr Sabia Akram (Lab: Elliman), lead member for leisure, culture, and community empowerment, said it was “unfortunate” the housing element cannot happen anymore, but the sale of the site was a “no brainer” as it will significantly reduce the council’s financial woes.