Decision details

To put in place a Commercial Property Investment Acquisition Strategy as a means to optimise returns on Council investments.

As part of the Council’s on-going review of finances and new income generating opportunities, some initial investigatory work has been carried out into the possibility of generating an on-going revenue stream by increasing its investment in commercial property. 

If the Council were to consider using some of its treasury related cash investments into commercial property, it is likely that a greater return could be secured, but there are several factors that would need to be considered in order to choose the most suitable investment. This could be achieved by putting in place a Commercial Property Investment Acquisition Strategy. The strategy will include the criteria that would need to be considered in order to choose the most suitable investment and measures to minimise risk.

Attached as Appendix A to the report is a draft Commercial Property Investment Acquisition Strategy for consideration by the Executive.

RESOLVED that:

(a)  agreed to the principle of a programme of investment in commercial property and adopt the draft Commercial Property Investment Acquisition Strategy attached as Appendix A to the report;

(b)  agreed £3 million as an appropriate amount for initial investment to fund a commercial property investment acquisition programme;

(c)  delegated authority to the Director of Finance and Resources, following consultation with the Executive Leader, to submit offers for Commercial Property Investments in accordance with the criteria set out in the Commercial Property Investment Acquisition Strategy with details of successful acquisitions being included in the periodic financial monitoring reports proposed to be reported to the Executive in paragraph e) below;

(d)  agreed to the engagement of Hellier Langston, Chartered Surveyors under the terms of the framework agreement recently put in place, to work with officers to identify suitable commercial property investments in accordance with the criteria set out in the draft Commercial Property Investment Acquisition Strategy and as required act on the Council's behalf to negotiate acquisitions; and

(e)  requested officers to design a performance measurement framework to actively manage the portfolio, to be included in the periodic financial monitoring reports to Executive.