The Vice Chairman of the Finance Advisory Committee and Deputy Portfolio Holder for Finance was invited to present the report which updated Members on the progress of the Property Investment Strategy and looked at its future direction. The report sought updates to the Strategy and a further £25 million to be set aside for future investments.  He advised that it had been a major tool in helping the Council achieve financial self-sufficiency and continue to deliver a balanced 10-year budget.  It was important to continue with the Property Investment Strategy to enable schemes to progress and therefore deliver further income streams.  Going forward, additional property income would be required to meet the assumptions included in the 10-year budget.

He reported that the report had been discussed at length by Finance Advisory Committee who had noted the Policy & Performance Advisory Committee had thought of limiting investments to within Kent and after debate had concluded that the updated Property Investment Strategy be recommended to Cabinet subject to limiting the geographical area of outside the district as a 50 mile radius from the Argyle Road Offices.  He further advised since that meeting the Leader, Portfolio Holder for Finance and he had met with officers to clarify the issues raised. 

The Chairman, and Chairman of Policy & Performance Advisory Committee and Portfolio Holder, drew Members’ attention to tabledrevised recommendations which had been drawn up in response to the Advisory Committee concerns.  He also drew Members’ attention to the key points within the report.

It was noted that the risks relating to the strategy had also previously been reported to the Audit Committee, and a Scrutiny Committee Member Working Group had also looked at the Property Investment Strategy (Minute 88 (b) above).

Members discussed, and the Vice Chairman of Finance Advisory Committee explained the reasoning behind the arbitrary geographical limit request.  It was acknowledged that this could be reviewed.  It was also noted that the requested amount would not all be borrowed but approval of the recommendation would give the flexibility to spend up to that amount and the ability to act promptly on potential investments.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

The Chairman moved the revised recommendations and it was

Resolved:  That it be recommended to Council that

a)     expenditure of a further £25million be approved for the Property Investment Strategy as updated; and

b)     the updated Property Investment Strategy, as set out in Appendix A with the following amendments, be approved

i)   deletion of current point 5 and replaced with ‘Investment opportunities are restricted to those within a 50 mile radius of the Council’s Argyle Road offices’

ii) point 7 – deletion of ‘3% net of borrowing costs’ and replaced with ‘in excess of 3% for schemes that include some external borrowing’

iii)                point 11.i – deletion of ‘or 3% net of borrowing costs’ and replaced with ‘in excess of 3% for schemes that include some external borrowing’

iv)point 11.vi – deletion of ‘Rented’ to read ‘Private Residential’

v)  deletion of point 11.vii as no longer relevant.