Issue details

To request that the Executive consider providing additional funds to purchase further commercial property as a means to optimise returns on Council investments.

A report was considered by the Executive on 7 January 2013 and approval was given for;

(a)     The principle of a programme of investment in commercial property and the adoption of a Commercial Property Investment Acquisition Strategy;

(b)     an initial investment of £3 million to fund a commercial property investment acquisition programme;

(c)     the authority to be delegated to the Director of Finance & 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.

The first commercial property investment has been acquired at Clifton House in Segensworth and an offer has been accepted and is in the hands of solicitors on a second property investment in Eastbourne.

The balance remaining of approximately £339,000 after both purchases is unlikely to be sufficient to acquire a third commercial property investment.  However, when considering the Medium Term Finance Strategy, the Executive recognised the potential to make a further tranche of funding available to investment in commercial property, and this report invites the Executive to consider making £5m available to support the continued implementation of the Acquisitions Strategy.