Issue - meetings

To consider the development of a commercial property investment strategy.

RESOLVED:

That the Cabinet approves, in principle, the proposal to invest in commercial property either for the purpose of economic development or regeneration within the District, or for the purpose of income generation for the provision of services, or a mixture of both, and requests that a commercial property investment strategy be developed for further consideration by the Cabinet.

The Cabinet considered whether, in principle, the Council should invest in commercial property as a means of promoting economic development or regeneration; or for income generation.  The Council already held 23 such properties that currently achieved a better yield than other investment modes.  Other authorities in the region had, over many years, developed considerably more extensive property investment portfolios.

The report set out in detail the factors that must be taken into consideration in deciding whether to acquire further properties and the potential risks involved. The report analysed the financial implications and the opportunities that could be generated through this route.

It was important that any investment strategy was supported by a clear asset management investment strategy document that would be applied when making investment decisions and consequently demonstrate that the Council was acting prudently in the management of its financial affairs.  The issues that such a strategy should cover were summarised in section 5 of Report Item 5 considered by the Cabinet.

The potential approach to the purchase and management of commercial property was set out in Appendix 2 to Report Item 5 considered by the Cabinet.

The Cabinet was advised of the views of the Corporate Overview and Scrutiny Panel (Minute 34, 16 December 2016 refers).

RESOLVED:

That the Cabinet approves, in principle, the proposal to invest in commercial property either for the purpose of economic development or regeneration within the District, or for the purpose of income generation for the provision of services, or a mixture of both, and requests that a commercial property investment strategy be developed for further consideration by the Cabinet.