Issue - meetings

The report of the Director – Finance and Corporate Services is attached.

It was RESOLVED that:

a)               the methodology of assessing the Council’s commercial property portfolio on an ongoing basis be supported; and

b)               a review of the commercial property portfolio be undertaken every two years, reporting back to the Governance Scrutiny Group and Cabinet.

The Cabinet Portfolio Holder for Business and Growth, Councillor Edyvean presented the report of the Director – Finance and Corporate Services providing an update on the performance of the commercial property estate, together with a methodology for the ongoing performance of the Council’s commercial assets.

Councillor Edyvean confirmed that the Asset Investment Strategy had been launched four years ago and advised that the report specifically referred to those assets, which formed part of an Investment Strategy, and were designed to generate income.  Cabinet was reminded that it was important to review the investment portfolio, assess its ongoing performance, and future predicted performance.  It was pleasing to note that the Council currently had no high risk investment properties, and ongoing monitoring would continue to ensure that continued.  

Cabinet noted that the Council had always maintained an appropriate balance of properties, which generated an annual income of around £1.6m, with 35% of that income coming from some of the most recent acquisitions.  The report confirmed that the property portfolio continued to perform well, with even those highlighted in the report as a medium risk generating about 7% returns.  Generally, the medium risk properties were those identified as requiring relatively high future maintenance, which in itself was an investment to ensure that properties were fit for purpose, and Cabinet noted that the methodology for assessing the risk rating had been supported by the Governance Scrutiny Group, before being brought to Cabinet for consideration.

In seconding the recommendation, Councillor Moore thanked Councillor Edyvean for the comprehensive review, noted that the Council had 99 investment interests, covering a variety of uses, and acknowledged the importance of maintaining those assets

The Leader reiterated the importance of maintaining a balanced portfolio, particularly during the pandemic, and this had proved to be a particular strength to the Council.  It was pleasing to note the good returns on the investments, and it was a compliment to the Council that it had such a strong, well-managed portfolio. 

It was RESOLVED that:

a)               the methodology of assessing the Council’s commercial property portfolio on an ongoing basis be supported; and

b)               a review of the commercial property portfolio be undertaken every two years, reporting back to the Governance Scrutiny Group and Cabinet.