The subject of the decision:

In January 2019, Cabinet approved the creation of a Commercial Property Portfolio in principle, subject to the development and approval of an investment strategy.  This report sought approval of the Investment Strategy; the purchase of properties in accordance with the Investment Strategy and the governance arrangements set out in the Investment Strategy.

Alternative options considered:

None.

The reason for the decision:

The Council’s Commercial vision as set out in the Commercial Strategy was to be self-sufficient by 2020/21and not rely on Government grant to support the budget.  Cabinet was satisfied that the proposals outlined in the report supported the Council’s vision.

THE DECISION:

That Cabinet approves and recommends to Council that:-

(1)     the investment strategy is approved, subject to agreement by the Leader of the Council on Member appointment to the Board and the Property Investment Committee;

(2)     authority is delegated to the Chief Executive:

          (i)    to set up a wholly owned company for the purposes of acquiring and managing investment properties;

          (ii)   to appoint legal and financial advisors in line with the Council’s procurement rules;

          (iii)  to appoint Lambert Smith Hampton as property advisors and property managers;

          (iv)  in consultation with the Leader of the Council to make minor amendments to the Investment Strategy that may be necessary; and

(3)     authority is delegated to the S151 Officer for the financing of the commercial property portfolio.