Agenda item

30.1     The Acquisition and Disposal Manager introduced the report. The Council has £550 million worth of non-highways assets on the property balance sheet, and most of the assets are fairly illiquid. There is a core of around £25 million worth of assets that have been the focus of the work on the Strategy, which could be delivered over the next five years. The work on the Strategy does not include direct property investment. However, the Strategy does include the ability to invest directly into new opportunities. For example, the Council could invest in a site that it owns to develop business units rather than sell the site. The report outlines the business processes and the sort of resources required for the implementation of the Strategy. This includes how the Strategy works with asset management planning, property planning and investment planning processes within the Council.

30.2     The Committee asked whether all assets and leased buildings are under central management. The Chief Operating Officer responded that the corporate landlord model is in place for most assets, but there are still a few smaller assets managed directly by departments. This is being reviewed as part of the RPPR process in terms of the operational estate. The management of the portfolio of operational assets, and the portfolio of non-operational and investment assets, are both functions within the Property Team. Corporate policy links asset management with the investment part of the property function.

30.3     The Acquisition and Disposal Manager outlined that from a portfolio management point of view, there are other financial and non-financial returns that can be achieved rather than simply achieving a capital receipt. Implementation of the Strategy includes a wider modelling of economic benefits. The Committee noted the process of site and asset reviews and where a higher level of social value benefit is possible, an opportunity for a Community Asset Transfer (CAT) of an asset may be identified. The Committee suggested that it would be good to publicise the Community Asset Transfer process where an asset is transferred for specific social or community value outcomes, and that it is important to have a good explanation of the process.

30.4     The Committee asked whether there is a view on the equity to debt ratio and a minimum acceptable level of return, when the Council is looking at redeveloping or investing in an asset.  The Acquisition and Disposal Manager replied that the equity to debt ratio and the level of return is taken into account on a site by site basis.

30.5     The Committee asked what was meant by paragraph 3.3 in the conclusion of the report. The Acquisition and Disposal Manager explained that this refers to the impact that changes to the delivery of services may have on property portfolio, which will in turn feed into the Property Asset Disposal and Investment Strategy work. The Committee asked if there was a risk of a premature disposal of assets in a scenario where the Council’s finances change in the future. The Acquisition and Disposal Manager responded that the review process checks to see if an asset is suitable for alternative uses before it is declared surplus. So there is a process in place to assess whether an asset may need to be retained for future use.

30.6     The Committee RESOLVED to note the report covering the period April 2018 to September 2018.