Agenda item

To consider the Property Portfolio Investment Strategy; which was considered by the Executive on 28 September 2017.

RECOMMENDATIONCouncil is recommended to:

1)         note the recommendations agreed by Executive on 28 September 2017, as set out in the report;

2)         agree that up to £100m borrowing powers, in line with the Property Portfolio Investment Strategy, are delegated to the Director Corporate Services, in consultation with the Leader, Executive Member for Finance and the Executive Member for Business, Economic Development and Regeneration;

3)         agree that in line with the Property Portfolio Investment Strategy the Director Corporate Services, in consultation with the Leader, Executive Member for Finance and the Executive Member for Business, Economic Development and Regeneration, be delegated authority to invest up to a maximum of £20m for a single transaction.

The Council considered a report, set out at Agenda pages 47 to 50, which proposed the establishment of a Property Investment Portfolio which would mitigate the impact of reducing Central Government funding by creating new income streams.

The report stated that the Council had already embarked on an assets investment programme through the town centre regeneration and the Council-owned housing companies. However, the Council’s property portfolio was still relatively small compared to other local authorities.

The report set out proposals for setting up an Investment Portfolio which would look at investments in development on Council-owned land and the purchase and/or development of income-generating or re-saleable property assets. In order to fund investment opportunities it was proposed that the Council would utilise Public Works Loan Board borrowing of up to £100m or the proceeds of asset disposals.

In presenting the report, Oliver Whittle stated that the costs of borrowing would be covered by investment income and, therefore, there would be no cost to the Borough’s Council Taxpayers. Progress relating to the portfolio would be reported to the Executive on a regular basis.

The Executive had agreed to the broad principles set out in the report at its meeting on 28 September 2017. However, the Council’s Constitution imposed a limit on the Executive’s authority to incur up to £15m on individual Capital schemes subject to such expenditure being within Council approved budgets. Consequently, Council approval was required for Recommendation 3, relating to a limit of £20m for investment in individual schemes.

It was proposed by Oliver Whittle and seconded by Charles Margetts that the recommendations set out in the report be agreed.

Following debate, upon being put to the vote, the recommendations were declared by the Mayor to be carried.

Prior to the vote being held, six Members, in accordance with Rule of Procedure 4.2.15.15, requested that a recorded vote be taken on the proposals. The voting was as follows:

RESOLVED That:

1)     the recommendations agreed by the Executive on 28 September 2017, as set out in the report, be noted;

2)     up to £100m borrowing powers, in line with the Property Portfolio Investment Strategy, be 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;

3)     in line with the Property Portfolio Investment Strategy, the Director of Corporate Services, in consultation with the Leader, the Executive Member for Finance and the Executive Member for Business, Economic Development and Regeneration, be delegated authority to invest up to a maximum of £20m for a single transaction.