Issue - meetings

To receive a briefing from Councillor Bramhall, Portfolio Holder for Property & Acquisitions, and to consider any issues that arise.

To consider any advance questions submitted.

The Committee received a presentation from Councillor Mrs N. Bramhall, Executive Member for Property and Acquisitions, on the Council’s property activities. The presentation detailed the Council’s current and previous property activities, including investment acquisitions and developments, community facilities and regeneration projects. The potential for benefits to the borough from significant potential developments such as Horley Business Park and Marketfield Way was noted.

The portfolio holder outlined the Council’s criteria and process for considering potential property actions. It was identified that the team had access to a range of contacts and expertise and considered both individual properties and the broader prospects for associated sectors. Opportunities were noted to be considered by the members of the strategic property advisory group and the full Executive prior to decisions being made. All prospects were identified to be subject to due diligence and independent valuation.

The committee considered and discussed the presentation. There were a number of questions and comments, relating to the following topics:

·         Greensand Holdings. It was identified that Greensand Holdings, the property company owned by the Council had acquired one property to date, and other acquisitions had been made by the Council.

·         The property selection process. It was identified that many potential properties would be initially considered, and then assessed according to a number of established criteria. The criteria were noted to include the potential financial return and associated details, along with opportunities to deliver on the Council’s strategic objectives. The procedure was noted to include initial assessment by officers, consideration by the portfolio holder, strategic property advisory group and Executive Members. It was noted that many prospects were considered but not approved. It was noted that the criteria were being considered as part of the development of the Council’s revised investment strategy.

·         Regeneration successes. Members expressed appreciation for the regeneration work undertaken across the borough, including in the Preston and Merstham areas, and the benefits for the local areas.

·         Secondary benefits of developments. Discussion was undertaken of the potential secondary benefits to local areas of development activities. It was identified that the addition of a cinema and additional retail units in the Marketfield Way development would be expected to boost the local evening economy and provide further benefits to existing local businesses. The development of additional homes was also identified to address the demand from individuals with a connection to the borough seeking homes, and to provide opportunities for key workers for local business to live locally.

·         Portfolio performance. The Council’s property portfolio was identified to generally be performing in line with market expectations, subject to variation across sectors. It was identified that approved projects were expected to offer positive future prospects.

·         Implications to retail from Brexit. It was identified that there was the potential for the consequences of Brexit to have an impact on retail, but that there was a great deal of uncertainty around the matter. It was identified that the Council’s property was distributed across a range of sectors, so should be  ...  view the full minutes text for item 29