MIDDLESBROUGH Council has rejected claims that it acted improperly over the proposed sale of a business and conference centre.

Members of its executive sub-committee for property were asked to approve the sale of the TAD centre complex to property developer Nasser Din for £400,000 at a behind closed doors meeting in March.

However, councillors were concerned at the potentially contentious timing ahead of the pre-election purdah period – describing it as a “bit of a timebomb” – and deferred the decision, requesting more information.

Another comment made at the meeting, chaired by newly-elected Middlesbrough Mayor Dave Budd, included: “You cannot buy a decent detached house in Nunthorpe for this type of money."

Last year the centre, in Ormesby Road, was independently valued at £600,000, although it is listed on the council’s assets register at £1.5m.

Five expressions of interest in the four-storey facility were received after the freehold was marketed by Middlesbrough Council, but negotiations were only held with Mr Din after he was declared to be the preferred bidder as the only one proposing to use the building for commercial business purposes.

Meanwhile, one interested party subsequently brought a complaint questioning the process the council had followed.

In another twist, an investigation has been launched by council chiefs after a secret recording of members’ discussions at the meeting was taken and circulated.

Former councillor Len Junier, who lost out in the mayoral race to Mr Budd, said it was another council asset being sold off for “peanuts”.

Mr Junier has previously challenged the local authority over the sale of Acklam Hall, the town’s only Grade I listed building.

He said: “It is incredible that despite a number of other parties expressing an interest, they were never asked to make any formal bid.

“To consider the sale of a significant asset at a committee meeting that was exclusively Labour, but exclude the press and public shows a complete lack of openness and transparency.

“This matter has been handled in a completely unacceptable way by elected members who should know better and is tantamount to malfeasance.”

Mr Din, a former campaign manager of outgoing mayor Ray Mallon, is the managing director of Supreme Property Developments which is behind a multi-million revamp of Crown House, a former Government office block in the centre of Middlesbrough.

When approached by The Northern Echo he said: “No deal has been done. I am a businessman and put bids in for properties all the time, some I get some I don’t get.

“I have had no discussion with the council following my initial interest.”

The council announced in November 2013 it intended to dispose of the TAD centre in an attempt to save £119,000 annually.

It has assured two existing tenants, a children’s nursery and a catering firm that their existing leases will be protected.

A council spokesman said there was nothing untoward about its handling of the sale.

He said: “The councillors wanted more detail on the value of the site and a decision was therefore deferred to a forthcoming meeting.

“The process initiated made it clear that only those expressions that were considered to be in accordance with the council’s long-term aspirations for the site would be pursued further.

“As this sale has not been completed, details of the negotiations, valuations and parties involved must remain confidential.

“However the disposal of all assets of this nature is undertaken to achieve the maximum possible benefit for the town, especially in the current economic climate.”