Issue - meetings

To receive the UDC Property Portfolio Q2 Report.

The Director – Finance and Corporate Services gave a summary of the Property Portfolio Q1 2021/22 report that set out the quarterly performance for the Council.

He said that Chesterford Research Park was fully let with the exception of two small rooms in the garden cottages. He highlighted the latest increase in the valuation of the park to over £170m and confirmed that all rent and service charge payments had been received. He updated Members on the properties at Takeley and Livingstone. He confirmed that there had been a change of insurer in respect of the Waitrose Distribution Centre and that all insurance payments were now up to date. He said that B&Q at Stane Retail Park was now open, and that Aldi expected to open early in December 2021. The Distribution Centre at Gloucester was aiming to be operational by the end of November 2021 and there would be no loss of income due to three weeks slippage. Works at the MOOG HQ, Tewkesbury were progressing well. He referred Members to the total asset valuation at the end of September 2021 as £221.5m and explained that the value of the MOOG HQ at Tewkesbury would be significantly increasing.

The Director – Finance and Corporate Services provided an update to Members on possible future acquisitions. He corrected an error on page 84 in that the figure should be £163.5m and said that there had been no changes made to the risk register.

Councillor De Vries joined the meeting at 6.35 pm.

In response to various questions, the Director – Finance and Corporate Services:

·         clarified that the “Net Yield” figure shown on page 89 of 4.76% was the figure before borrowing costs were taken out and should probably just be called “Yield”.

·         said that the increased valuation figure for Chesterford Research Park reflected an increased demand for life science research and there was clearly a high demand at the research park.

·         explained the mixed borrowing strategy being utilised over different time periods.

·         said that everything was currently on hold in the light of the Prudential Code consultation and proposed changes to Minimum Revenue Provision and possible debt caps.

The Chair thanked the Director – Finance and Corporate Services for his report and said that the investments were currently reflecting a healthy position.