Decision details

The Commercial Investment Strategy (CIS) was approved in October 2015 and the Cabinet is now required to approve the CIS Business Plan. 

Approves the:

 i.  Commercial Investment Strategy Business Plan attached as Appendix 2 of the Officer’s Report;

ii.  transfer of £6.8m from the Council’s General Fund balance to the Capital Investment Earmarked Reserve;

iii.  potential to borrow up to £35m from 2016/17 onwards to support the Commercial Investment Strategy. However, there will be ‘head-room’ to borrow a further £25m if commercial opportunities arise; and

iv.  That the Cabinet notes the Minimum Revenue Provisions Policy.

The Cabinet further instructs Officers as follows:

•  that the revenue investment of £2.5m, detailed in the Investment Schedule (attached as Appendix 3 of the Officer’s Report) for Quarter 3 of 2015/16 Financial Year, be invested without delay;

•  that the capital investment of £5m in respect of capital property shares and/or Real Estate Investment Trusts (REITS), subject to relevant due diligence, be invested without delay;

•  that an Action Plan be developed to ensure that the capital investments of £5m in respect of Direct Assets (Local Area) are acquired by the end of Quarter 4, 2015/16;

•  that Table 1, as contained within the Officer’s Report titled ‘Estimated Revenue Returns from the Commercial Investment Strategy’, be included in the Medium Term Financial Strategy; and

•  that, without delay, to complete a review of the Estates Service to enable the requirements of the Commercial Investment Strategy to be achieved.

RECOMMENDS

that Council approves the Minimum Revenue Provisions Policy for the Commercial Investment Strategy as detailed below:

‘For each capital investment undertaken under the requirements of the Council’s Commercial Investment Strategy, Minimum Revenue Provision will be made that is equal to the principal repayment for any loan finance supporting the investment’.

To enable the Council to commence the acquisition of commercial assets and in turn generate revenue funding to assist the Council in delivering cost effective services.

None considered.

As contained within the Officer’s report.