Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT

1.    the further development of Cheltenham Enterprise Centre as part of the council’s Property Portfolio Strategy be approved, funded from unapplied capital receipts.

2.    Authority be delegated to the Head of Property Services and the Borough Solicitor to proceed with the required contractors tendering process to develop the site.

The Cabinet Member Finance introduced the report and explained that CBC owned the freehold of the Cheltenham Enterprise Centre which was a small light industrial site off Arle Road. Planning consent was granted in 2003 to build 8 light industrial units and the construction of the first phase was completed in 2007 and comprised 4 units. These existing units had been fully occupied since completion generating a rental income of £44.5 k per year on a full repairing and insuring lease with all common area costs recovered by a service charge.

The report was seeking Cabinet’s support to build 3 additional units of a similar size as part of the council’s Property Portfolio Strategy as approved by Cabinet on 6 December 2016. These new buildings should deliver an additional £53k per annum in rental income, which after known costs would generate a yield of over 8% which was well above the 5% councils investment target.

The estimated construction costs of £585K would be confirmed via the tender process, but the build was to be funded through the investment property portfolio using unapplied capital receipts.

The Cabinet Member Finance explained that the Asset Management Working Group had been consulted and fully supported the proposal.

Members supported the proposal which they believed was an excellent use of funds which would generate an income for the council and help small businesses.

RESOLVED THAT

1.    the further development of Cheltenham Enterprise Centre as part of the council’s Property Portfolio Strategy be approved, funded from unapplied capital receipts.

2.    Authority be delegated to the Head of Property Services and the Borough Solicitor to proceed with the required contractors tendering process to develop the site.