Issue - meetings

Property Portfolio Investment Strategy

Meeting: 28/09/2017 - Executive (Item 49)

49 Property Portfolio Investment Strategy pdf icon PDF 142 KB

Additional documents:

Decision:

That:

 

1)           the broad principles of the Property Portfolio Investment Strategy as set out in Part 2 of the report be endorsed;

 

2)           delegated authority be given to the Director of Corporate Services, in consultation with the Leader, Executive Member for Finance and the Executive Member for Business, Economic Development and Regeneration, for purchases totalling up to £100m;

 

3)           Council be recommended to agree that up to £100m borrowing powers are delegated to the  Director of Corporate Services, in consultation with the Leader, Executive Member for Finance and the Executive Member for Business, Economic Development and Regeneration;

 

4)           it be noted that the cost of borrowing will be funded by the investment income from the commercial assets;

 

5)           it be noted that developments on Council owned land will be brought back individually to Executive on a case by case basis.

 

Minutes:

The Executive considered a report setting out a proposed Property Portfolio Investment Strategy which would preserve and improve the financial resources available to the Council by generating revenue income from capital investment.

 

The Executive Member for Finance advised that the report proposed a strategy for two types of investment; development on Council owned land and also purchasing or developing assets that could generate an income or be resold at a profit.  In order to limit the risk and uncertainty the Council would seek to acquire a range of property types, sizes, building conditions, locations and covenant strengths in order to provide a spread risk and balanced portfolio and the first priority would be development of Council owned land.

 

The Leader of Council advised that the Council had a strong record of prudent investments in commercial assets such as properties within the Borough and they were providing good commercial returns.  There were many other local authorities who had property portfolio investment strategies and they were already investing in commercial opportunities in order to produce revenue streams that could be used to address some of the ongoing and relentless austerity measures that local government face.  The financial position was expected to be bleak leading over the next few years to a total of £20m to find so it was necessary to look at possible revenue funding streams and this Stratey would go some way to addressing that issue.

 

Due to the fact that Members wished to discuss the information in the Part 2 sheets it was agreed that the item be further discussed in Part 2.