Agenda item

Property Investment Strategy Update

Minutes:

The Chief Finance Officer presented a report which updated Members on the progress of the Property Investment Strategy to date and looked at the future direction of the strategy.

The Property Investment Strategy was approved by Council on 22 July 2014 to support the aim of the Council becoming more financially self-sufficient as Government Support continued to reduce. The initial acquisitions had helped the Council achieve the aim and the report provided an update on the acquisitions to date and requested additional funding to enable the Council to achieve ‘self-sufficiency +’ and therefore provide extra value to residents.  Funding previously approved had now nearly all been spent.

 

External investment advisors had analysed the current property investment portfolio and provided advice as to the future direction of the strategy.  The advice had been used to propose changes to the Property Investment Strategy criteria and to support the reasons to set aside further funds.

 

A Scrutiny Committee Member Working Group had been looking at the Property Investment Strategy and was due to report back to the Scrutiny Committee on 30 March 2017.

 

The report requested approval for a further £25m to be set aside for the strategy, an amount recommended by Savills to reflect the likely future projects included in the report and to allow additional acquisitions to meet the council’s aim of achieving ‘self-sufficiency+’.  Further acquisitions and developments would help the Council attain the Property Investment Strategy income assumptions in the 10-year budget and also start to deliver ‘self-sufficiency+’ and enhance the services provided to our customers even further.

 

The draft minutes of the Policy & Performance Advisory Committee which had met and considered the same report on 23 March 2017, were tabled for information.  The Chairman advised that concern had been expressed by that Advisory Committee with regards to investment outside the district, and had suggested a restriction of within Kent.  Members discussed this and also had the same concerns.  It was felt that investing within the District not only benefitted residents but local knowledge had a large part to play in knowing what to invest in, and that by going out of the district the essence of the strategy would be eroded and there would be more risk involved with investing in ‘unknown’ locations.  It was generally felt that ‘south east’ was too large but the Committee did not want to exclude Surrey or Sussex.

 

Some Members were uncomfortable with the sum of £25m requested.  There was concern that there was not enough information to understand why the sum was needed. 

 

It was noted that the length of the committee process hindered the ability to act on purchases.

Public Sector Equality Duty

 

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

 

Resolved:  That it be recommended to Cabinet that

 

a)     the updated Property Investment Strategy be agreed subject to limiting the geographical area of outside the district as a 50 mile radius from the Argyle Road Offices; and

 

b)     a further £25m be set aside for the Property Investment Strategy.

 

Supporting documents:

 

Back to top