Asset management strategy

Overriding Objective of the Strategy

The Council will own an optimum estate which enables the effective delivery of its services and objectives. This will be managed efficiently, effectively, and sustainably on a basis that represents value for money, minimises risk and has the interests of the local community at heart.

Strategy Overview

This Asset Management Strategy covers all of the Council's property holdings. These are held in three distinct portfolios as shown below, but it is intended that individual assets may be transferred from one portfolio to another if required (for example if alternative use is more beneficial to the Council's need than as an income producing asset).

The Investment Portfolio will seek to:

• deliver a secure and sustainable income net of all attributable costs
• maintain capital value in real terms over the ownership period
• generate a net profit over medium and long term after deduction of attributable costs and with appropriate sinking fund contributions
• ensure that income returns meet or exceed budget targets and wider industry-standard benchmarks on a medium- and long-term basis, with an expectation of long-term income growth
• diversify risk through leasing assets to a broad range of tenants operating across different business sectors and with a mixture of income lengths (i.e. between 5 and 15 years
• make a positive contribution to the Council's commitment to reach Net Zero for Scope 1 and 2 emissions by 2030
• the Council to retain these assets if they perform to required criteria but will continually assess alternative options in the event of under performance or reasonable expectation of adverse future circumstances