Decision details

To consider the report of the Leader of the Council seeking approval to the Property Investment Fund, investment criteria, governance arrangements and delivery options

(i)  To approve the draft Business Plan, Investment Criteria; Governance Arrangements and Delivery Options.

(ii)  To delegate authority to the Head of Capital Assets following consultation with the Leader of the Council and the Council’s Capital Board to agree the detailed business plan and any future variations to Investment Criteria and Delivery Options.

(iii)  To delegate authority to the Head of Capital Assets, following consultation with the Leader of the Council and the Service Director; Strategic Finance and Commercialisation to approve the acquisition or sale of property or other investments in accordance with the Business Plan, Investment Criteria and Delivery Options and to do anything necessary to give effect to the recommendations contained in this report.

(iv)  To delegate authority to the head of Capital Assets, following consultation with the Leader of the Council and Council’s Capital Board, to take all further decisions in respect of real property acquisitions and disposals irrespective of value. 

(v)  To recommend to Council as part of the review of the Constitution at the Council’s AGM to amend Financial Procedure Rules to exempt real property transactions from the value thresholds determining level of decision make and to amend Article 12 of the Constitution to exclude property transactions from the definition of ‘significant budgetary impact’ that determines whether or not a matter be treated as a Key Decision. 

To allow the Council to increase income through strategic property investment, in response to the current financial pressure, reducing the reliance on Government grant by building asset and investment portfolios that provide a commercial return.

This will build on the current investment portfolio which the Council manages. This has a current value of £99.7M (31^st March 2015) and generates a gross annual return of approximately 7%.

Not to further invest in property would forego the opportunity to increase the potential for additional revenue.