Issue - meetings

To receive the Annual update on progress with Commercial and Residential Property Strategy (Presentation).

The Panel received a presentation summarising progress with the Commercial and Residential Property Strategy.

Councillor O'Sullivan declared a non-pecuniary interest as Chairman of Appletree Property Holdings Ltd, for reasons of transparency.

Members were reminded that the aims of the Commercial Property strategy were to acquire or develop property within the District and secure local economic benefits. An original portfolio fund of £30m had been supplemented with a further £20m following revision of the Strategy in 2022. The Commercial Property Panel (CPP) met regularly and comprised of senior officers and members.

The Panel received an overview of investments at various sites and income in 2023/24, and noted the reduced activity due to adverse market conditions, particularly higher interest rates. Cumulative net income up to 2023/24 was £963K. 

Members noted the detailed governance arrangements of Appletree Property. It was a private limited company and a commercial enterprise which aimed to be a landlord of choice and offered market rental properties in the District to people with a local connection, with an investment fund of £10m. The Board was comprised of members and officers with the Chairman being Cllr O’Sullivan. The Board met every 3 months. Rental income in 2023/24 was £240k. No new acquisitions had been made in 2023/24 due to market conditions.

A member praised the success of the Business Park but felt there should be more such examples, and queried whether the overall strategy needed to be reviewed in this regard. It was explained that although the Council had identified a number of opportunities over the past year, it had been decided not to invest given the current adverse market conditions.  Members were also reminded that both enterprises were long term (40-50 year) strategies. There had been significant activity since inception in 2017, and there would always be fluctuations.

RESOLVED:

That the annual updates be noted.