Decision details

RESOLVED:

That the Cabinet recommends to Council that they approve:

1.     the Asset Investment Strategy attached as Appendix 1 to the report.

2.     the proposed level of investment, at £20M, and associated financial

implications as set out in the Strategy and the report.

3.     the continuation of the Property Investment Panel for the purposes set out

in this report.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Report to Cabinet and Full Council.

PORTFOLIO:

Finance, Investment and Corporate Services.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST(S):

None.

DISCUSSION:

The Portfolio Holder introduced the report and explained that the second stage of investment was being proposed, with a requested, further £20million of spending to the capital programme. It was explained that this additional funding would predominantly support the local economy and provide a return in investment to the Council.

The Service Manager of Estates and Valuation reported that since 2017, the Asset Investment Strategy (AIS) had helped local businesses grow and had identified opportunities for income generation. The Council had secured the diverse portfolio of good quality commercial property within the District which supported economic activity and industrial development as well as providing a worthwhile rental income to support the Medium-Term Financial Plan. The Platinum Jubilee Business Park was given as a tangible example of the strategy’s implementation and success. The Service Manager was confident that opportunities would continue to arise in the District and the AIS would accommodate new investments. The acquisitions that could be made would be funded using a combination of reserves and borrowing.

Cabinet considered the Financial Strategy and Business Case for the continuation of the AIS programme and endorsed the additional funding of £20M to be made available. This would accommodate further property acquisitions before a further review of the  strategy is necessitated.

A Commercial Property Panel, comprised of senor officers and members, would continue to provide decision-making, oversight and guidance in respect of the implementation of the Asset Investment Strategy. The Panel had reviewed the proposed Asset Investment Strategy 2022 and has endorsed it.

Capital financing would be considered in the round alongside other Council strategies, such as the Housing Strategy. This would allow the Council to best budget going forward, enabling the Council to utilise internal funding first with the prospect of external funding or borrowing if required.

The income generated by the AIS would go into the Council’s general fund to support all services provided by the Council, benefitting the needs of the residents.