Agenda item

To receive a presentation from Tim Mills, Executive Head of Property and Growth, on Asset Management. The presentation will cover progress on the Asset Management Strategy and future delivery, including a review of the portfolio and principles of disposal in light of the budget.

 

Cllr Martin Tennant, Major Projects and Property Portfolio Holder, will be in attendance at the meeting.

 

The Committee welcomed Tim Mills, Executive Head of Property and Growth who was in attendance to give a presentation on the Asset Management Strategy future delivery and a review of the portfolio and principles for disposal in light of the current budget position. Cllr Martin Tennant, Major Projects and Property Portfolio Holder was also in attendance.

 

The Committee were apprised of the reasons for asset management planning and the purpose of the meeting, which had been to:

 

·         update on progress since September 2022, when the Committee had last considered Asset Management,

·         to consider the next steps in implementing the Asset Management Plan and portfolio review, and,

·         to outline the proposed approach to the review.

 

Since September 2022, it was advised that a number of activities had taken place, these included:

 

·         An audit on Asset Management and Health and Safety of Council Properties – both achieving “Substantial Assurance”.

·         The purchase of The Meads, Farnborough, in June 2023 and procurement and mobilisation of new managing and letting agents for the site and the Union Yard, Aldershot, site.

·         Forfeiting of the lease at No. 168 High Street, Guildford, and the agreement of a short term let whilst longer term interest was secured.

·         Energy Performance Certification (EPC) Plus on a number of Council properties to inform investment going forward.

·         Improvements at Princes Hall, Aldershot and the Aldershot Indoor Pools (part funding through a grant) based on a five year time horizon for savings. Lighting at Princes Hall would also be considered going forward.

·         Ongoing discussions on rent and rent relief levels with community groups. It was advised that an increase in levels would be implemented.

·         Planning submitted for the development of Frimley Business Park, Units 4.3 and 4.4.

 

The next steps were to:

 

·         Deliver the letting of Union Yard over the next 12-18 months.

·         Continue to seek letting opportunities for vacant properties, in particular the Wilko unit in The Meads, Farnborough and No. 168 High Street and Ashbourne House, Guildford.

·         Review service charge costs at The Meads to increase sustainability and to maximise ancillary income.

·         Plan repair and maintenance projects at sites such as The Meads and Aldershot Indoor Pools.

·         Plan energy efficiency investment.

·         Continue the rent and rent relief review in line with the Asset Management process and principles.

·         Continue the review of the property portfolio to achieve £40 million from the disposal of land and property whilst maintaining a property income stream.

 

The Committee were advised of the principles for the review of the property portfolio, these included:

 

·         ensuring that the retained portfolio provided an income return that enabled the Council to afford the related borrowing and wider financial requirements and provide an improved rate of return

·         consideration of the impact on the Council’s balances/reserves and need for provisions

·         that the retained portfolio (post disposal) continued to allow the Council to meet its strategic objectives

·         the Council retaining assets that could release value or allow for capital to be raised through long leasehold agreements

·         the portfolio continuing to offer diversification to manage risk

·         that properties with known significant capital expenditure in the short term/medium term be considered for disposal

·         the ease of which significant capital could be realised through disposal without a lengthy sales process

 

The Committee discussed the presentation and raised a number of issues:

 

·         Union Yard, Aldershot – it was advised that there was some serious interest in two of the retail units and considerable interest in the container units as part of the markers yard. An open day for the containers would be held in April, 2024 and a promotional video of the spaces was also being created.

 

·         The Meads – it was advised that the Meads car park was not currently covering its costs and increased charges would be implemented in February, 2024. Residents using parking spaces would also have their charges gradually increased, to bring them in line with other similar facilities. Blocks 1 and 2 were realising a good income, however work was required to ensure that the other developed elements delivered the necessary income, and costs were reduced. Single lettings or vacancies could make a substantial difference.

 

·         Disposal of Assets – it was important that each property was looked at as a whole when being considered for disposal. The ease of letting, sustainability of tenants and saleability of a site, where all things to consider as part of the review process.

 

The Chairman thanked Cllr Tennant and Mr Mills for their presentation.