Decision details

Performance of the Major Property Acquisitions

Decision Maker: Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

Members received a report on the performance of the Council’s major property acquisitions.

 

In relation to The Square and associated town centre properties, the quarterly report received for the period from April to June 2017 had shown that gross rents were ahead of budget and that this was likely to continue for the remainder of the year.  The Centre had been rebranded in September and as at 30th June, the vacancy rate had been just under 5%, with almost 99% of rent due being collected.

 

The Council’s Land and Property Board had reviewed the position for redevelopment of the London Road Block in current market conditions and a report with proposals for its redevelopment would be presented to a future meeting of the Executive.

 

The Development Agreement in relation to Ashwood House and Pembroke House had now been exchanged.  By comparison with the agreed business case for this investment, the capital receipt received was more than the original estimate due to the fact that the final design now included additional flats. In addition to this capital receipt, the Council would also receive a contribution towards the planning costs and a projected CIL payment towards SANGS provision.  Whilst there were further financial commitments for the Council in respect of Public Realm works and the removal of the ramp from the car park, these would  be funded out of the proceeds of sale.

 

In the 6 months to 30th September, the rent income for St Georges Industrial Estate had exceeded the budget. As at the end of September, the estate had been 95% full and the Council’s agents were working on letting the empty units.  In the same period, the rent income for Albany Park had also exceeded the budget and the estate was now 100% occupied.

 

The Executive was advised that 2 other recent potential acquisitions had not proceeded.  It was the nature of property investment that not every property investigated would be purchased as it was necessary to ensure that only those investments which represent good value and a low investment risk were eventually purchased.

 

The Council was working with agents to investigate other potential acquisitions within the Council’s economic area to support regeneration and financial returns.

 

RESOLVED to note the performance of major property acquisitions.

 

 

Report author: Karen Limmer

Publication date: 13/11/2017

Date of decision: 07/11/2017

Decided at meeting: 07/11/2017 - Executive

Accompanying Documents: