Issue - meetings

To receive the UDC Property Portfolio Q4 Report.

The Director – Finance and Corporate Services gave a summary of the Property Portfolio Q4 Report that set out the quarterly performance for the Council.

He highlighted the following: -

• The Chesterford Retail Park valuation had gone up and had now exceeded the Council’s financial investment.
• Building 300 works were due for completion next month.
• A planning application from Western Homes for the land beside the current site in Takeley had been submitted and the application would be followed to ensure that the Council’s interests were not compromised. 
• The Veterinary practice in Scotland had changed ownership but Pets at Home remained as the Lease Guarantor.
• XPO Logistics had taken over Waitrose distributions, but it did not affect the Lease which remained the responsibility of Waitrose.
• The asset valuation on page 8 of the report did not yet reflect the true value as a number of the assets were forward funding and therefore their value was only partly accounted for.  

In response to questions from Members the Director – Finance and Corporate Services made the following points: -

• The Nucleus showed a minus figure because it was a cost; the restaurant and meeting room facilities ran at a loss as the Park provided these facilities to occupants as part of their agreements. 
• The Nucleus was hired out to tenants and members of the public for entertainment purposes but was constrained by security implications.
• He agreed to provide a breakdown of the Estate Service Shortfall.
• It did not matter that some of the floors were empty at the Veterinary practice as it had no financial implication to the Council because the lease agreement was for the whole building.
• The insurance on the Waitrose Distribution Centre had been paid. R White agreed to send a note of the two main commercial insurers he has contact with.
• The extra 2 acres of undeveloped land within the Waitrose lease could provide a future opportunity to build another commercial unit.
• The borrowing limits varied due to a number of factors including the length and type of loan, for example, repayment versus interest only.
• The Local Authorities, as lenders, could not ask for their money back early as they were tied to a contract for the duration of the loan.  Due diligence was carried out for each loan before they were entered into.

Councillor Khan said that the only risk missing from the list was the risk of a pandemic or an act of God.

Further to a comment made by R White, the Director – Finance and Corporate Services said he would be compiling a business plan for each asset over the next few months.

Councillor De Vries joined the meeting at 5:20pm.