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 seeks approval to acquire properties in line with the investment strategy and governance arrangements.

In accepting the recommendations, Cabinet will approve and recommend to Council that the investment strategy is approved; authority is delegated to the Chief Executive to set up a wholly owned company for the purposes of acquiring and managing investment properties and to appoint legal and financial advisors in line with the Council’s procurement rules; to appoint Lambert Smith Hampton as property advisors and property managers; in consultation with the Portfolio Holder for Economic Development and Finance to make minor amendments to the Investment Strategy that may be necessary; and authority is delegated to the S151 Officer for the financing of the commercial property portfolio.

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.