Issue - meetings

The Portfolio Holder for Economic Development including Commercial Strategy outlined the purpose of the Council’s commercial interests to support council services and noted that 8 new investments had been made in the previous 6 months.  He said that the target income of 7% gross, 3% net had been achieved.  A robust governance process and a cautious approach to risk was taken in assessing any potential investment and the 3% net return was after money had been set aside to repay the capital.  A risk reserve of £6m was set aside in case of any failed assets.  He noted the spread of the portfolio across a number of office, industrial, retail and housing.   The higher risk and higher return projects remained the battery storage project and the housing development.

In response to questions from Members, the Portfolio Holder and the Commercial Property, Land and Development Manager advised:-

·         Whilst the primary concern of the Commercial Strategy was investment, it also had some regard to environmental issues and environmental policies influenced the choice of investments.

·         All investment involved some risk.  At the beginning of the year 46% of investments were in High Street properties but that had now reduced to £17% by focusing on investment in other sectors

The Chief Executive advised that the Council was building a portfolio of investments and investment in retail was part of that and also part of the future regeneration of town centres.

The Vice-Chairman of the Scrutiny Committee thanked the Commercial Property, Land and Development Manager for answering their questions at the Scrutiny Committee meeting.

A question was raised relating to information contained in the confidential appendix to the report and it was:-

During discussion, the Commercial Property, Land and Development Manager responded to the question regarding future investments considered.

At the conclusion of the debate Members were content to note the recommendations of the report.