Decision details

To make further investment in commercial property.

Matter for Decision: The Council’s commercial property portfolio had consistently produced good rates of return compared to Treasury Management investments over the past few years. This reflected recent exceptionally low bank interest rates on cash investments and that the Cambridge commercial property market had proved resilient. The Budget Setting Report for 2015/16 recommended the allocation of £8m for investment in commercial property to generate additional income of £400,000 p.a. from 2016/17. For the reasons set out in the report, it was recommended that the funding available be invested directly in acquiring new property.

Decision of the Executive Councillor for Finance and Resources

The Executive Councillor resolved that:

     i.        The Council allocates £8m for investment in acquiring commercial property, subject to the 2015/16 Budget Setting Report being approved.

    ii.        Authority is delegated to the Head of Property Services to acquire commercial property up to £8,515,000 (inclusive of acquisition costs) in consultation with the Executive Councillor for Finance and Resources, the Chair and Opposition Spokesperson for Strategy & Resources Scrutiny Committee and the Head of Finance

Reasons for the Decision: As set out in the officer’s report

Any alternative options considered and rejected: As set out in the officer’s report

Scrutiny Considerations:

The committee received a report from the Head of Property Services.

The Scrutiny Committee considered the recommendations and endorsed them by 5 votes to 0.

The Executive Councillor approved the recommendation.

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

Not applicable.

Update on Delegation:

15 June 2015. Decision taken to acquire the Orchard Park Local Centre having undertaken the relevant consultation.