As agreed at the Council's Executive Committee Meeting today (20 March 2008), the land covering 98,000 square feet, in the city’s Possil area, will be sold for £1,500,000.

Mainly used by the Council’s Land and Environmental Services (LES) department as a transport depot and taxi inspection station, the land at 73/75 Hawthorn Street, will be sold in a deal which will see a phased withdrawal from the site over five years.

On completion of the sale, in April next year, the Council will lease back areas from Allied Vehicles until it’s light fleet management operations have been relocated and consolidated into a single Council wide facility for vehicle storage and maintenance.

Negotiations were entered into at a time when LES were reviewing their fleet service accommodation and vehicle repairs provision. This followed a reduction in council owned vehicles and the introduction of a new procurement arrangement, which reduced the need for a maintenance provision. 

Therefore it was envisaged that the Hawthorn Street complex would close.

At the same time, despite receiving attractive offers to relocate out with the city, company directors made it clear that they were committed to staying within Glasgow and fleshing out a deal with the Council.

Employing 350 people at its existing nine-acre motor manufacturing and distribution facility on Balmore Road, Allied Vehicles expansion plans include introducing new environmentally friendly products such as electric vans, buses and taxis to the market and exporting vehicles.

Executive Member for Development and Regeneration Services, Councillor George Ryan said:

“Since it started in 1994 Allied Vehicles has thrived, bringing both employment and prosperity to the city and we certainly did not want to see them leave.

“They approached the Council in 2007 asking for assistance in finding suitable premises to aid their expansion and I am pleased that we have been able to help them remain in their current location where they are a key part of the Possil community.

“The company’s growth plans will undoubtedly add to Glasgow’s burgeoning economy and bring more employment opportunities to the area.

“Glasgow is investing millions of pounds in growing the city’s business base through sustained investment in commercial property, the provision of transport and communications channels and providing easy access to new markets.

“However, business retention, especially where highly skilled jobs are involved, is just as important as attracting new companies.

“We must also do our utmost to support those companies that have been established in our city for many years and have made a valuable contribution to our economy.”

ENDS