Asset Development and Disposal Programme

While the asset is under consideration without a decision it cannot be disclosed. The list is confidential for commercial reasons - as we will be marketing these properties, we do not want to jeopardise our chances of maximising capital receipts (and best value for the council and the taxpayer) as properties must to be offered "fresh" to the market.

Alongside the securing of capital receipts to achieve financial sustainability, the authority is seeking to achieve wider financial and economic benefits from the disposal and development of council-owned assets. This includes increased revenue, as well as reductions in building maintenance and utilities costs. The benefits will make a significant contribution to the delivery of the council’s ongoing budget savings. However, it is also an opportunity to be more proactive about the management and use of council assets and support regeneration and economic development initiatives across the city.

A high-level review identified assets that could generate a significant capital return based on their estimated value and marketability. For any commercial asset this was followed by assessing the current/future income to establish a Net Present Value (NPV). This NPV indicated whether retaining an asset and continuing to receive income would be more beneficial than receiving a capital receipt that would reduce borrowing costs.

Assets that are likely to cost a significant and increasing amount to maintain and/or are currently underutilised have also been considered.

The Government also provided guidance that local authorities should seek to reduce any assets owned outside of their boundaries.

The listing of an asset on the confidential appendix allows us to consider those assets for a decision to either retain, dispose or develop, it does not automatically mean that all those assets will be sold. This has already been the case for items listed in Phase 1; to retain certain assets instead of dispose because of further market evaluation.

The decision to commence the programme and the agreement of its principles were confirmed via a Cabinet and Full Council decision in March 2024. This included agreement on the high-level assessment of each asset. This decision identified delegated decision makers who would be responsible for programme decisions on the marketing and sale of any asset going forward. This approach was adopted to allow the work to progress at pace. The programme is required to re-visit Cabinet and Full Council approval for each phase of work proposed to ensure the status assigned to each asset remains appropriate.

Final decision is made by the Cabinet members for Economic Development and Finance and Transformation in consultation with senior officers. Every decision is backed by a Delegated Decision Notice (DDN) and full market valuation and viability.

To help fund regeneration and development initiatives, reduce borrowing against assets, reduce any outstanding debt against assets, and invest in transformational activity across the organisation and within our city.

Yes, the decision to dispose of any car park will be taken on a locational basis rather than assessing any car park in isolation. We have carried out impact assessments in each location that take into account usage in terms of customers, remaining available capacity across each area’s car parks and the potential impact on transport.

We have appointed Southampton’s branch of Savills as strategic partners and are working with them to establish the route to market that produces the best value return for each asset we are looking to bring to the market.

Yes, we did carry out a full and concise procurement tender process.

The authority’s asset portfolio requires significant day-to-day management, and as a result limits the available resources to deliver a programme of work on this scale alongside those commitments. Savills provide the additional capacity to deliver this work, bringing significant local and national expertise and established networks within the industry that will enhance the marketing and sale of assets.

Dependent on the type of asset we are undertaking a range of activities to help determine the market value. These include market appraisals, assessment of development potential, seeking planning advice and soft marketing and networking to establish the demand for certain assets. We are also taking advice from our strategic partner on the sales method that will provide us with the greatest return. Assets that would prove not viable on the open market will therefore be retained.

All statutory consultation obligations will be met, and additional engagement will take place where there is deemed to be a significant impact on residents, businesses or specific groups of assets that serve as public amenities. The process will depend on the type of asset, its location and current use.

As part of the initial review of the authority’s portfolio a number of assets were identified as potential development opportunities that could create regeneration in areas of the city and also generate future income for the council. These opportunities will be reviewed alongside other future city planning initiatives to ensure that their value and potential is maximised.

As we are partnered with Savills Southampton any asset that is being marketed will be available through their advertising channels.

ADDP is helping the council move to a much more proactive asset management model and is one of the reasons we are in a position to both balance our budget and allow future investment in regeneration within our city. By proceeding with a phased approach, we are able to consider the impact in the round of any potential disposals and fully evaluate the viability and impacts of such decisions.