Corporate Policy and Resources Committee

 

12 May 2025

Title

Asset Investment Strategy 2025/2026

Purpose of the report

To seek approval to the Asset Investment Strategy for the financial year 2025/2026

Report Author

Sian Bowen – Principal Asset Manager

Ward(s) Affected

All Wards

 

Exempt

Report - No.

Appendix 1 - No

Appendices 2-12 -Yes

Exemption Reason

Appendices 2-12 contain exempt information within the meaning of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006 Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information) and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information because, disclosure to the public would prejudice the financial position of the authority in any lease, contract or other type of negotiation with the tenant or developer, who could then know the position of the Council.  

 

Corporate Priority

Service delivery and Resilience.

 

Recommendations

 

Committee is asked to:

 

To approve the Asset Investment Strategy which sets out the priorities and key focuses for proactive management of the Council’s Investment and Regeneration Portfolio during 2025/26.

 

 

 

 

 

1.            Summary of the report

What is the situation

Why we want to do something

•      Annual Business Plans for the investment and regeneration assets have been presented and approved by the Commercial Assets Sub Committee between January and March this year.

•      The Asset Investment Strategy provides a summary of the previously approved Business Plans setting out the prioritisation of key initiatives and focuses during 2025/26

•      The Asset Investment Strategy also provides the amalgamated predicted income numbers for the next 5 years

•      The Asset Investment Strategy priorities and objectives to allow the Council to understand and monitor the progress of work being undertaken whilst managing the Council’s Investment and Regeneration Assets whilst also being able to monitor future income projections

This is what we want to do about it

These are the next steps

•      The enclosed Asset Investment Strategy builds on the outputs from the Annual Business Plans and clarifies the focus and priorities for the FY 2025/2026

•      The Asset Investment Strategy will form the basis of the Asset team’s focus and priorities for the Investment & Regeneration portfolios.  It is intended to provide clarity and guidance to the objectives and approach towards managing the portfolios over the current financial year.  It will also assist with monitoring performance against objectives.

 

2.            Key issues

2.1         The Asset investment Strategy sits below the Asset Investment Strategy and Asset Management Plan and provides a more detailed analysis and income projection of those assets within the Investment and Regeneration portfolio. 

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2.2         The Asset Investment Strategy seeks to clarify the approach that the Assets team will take to managing the Investment & Regeneration portfolios over the FY 2025/2026.  It highlights the challenges and opportunities for each property within the portfolio and sets out an approach to ensure that rental income is maintained and, where possible, maximised.  Equally, it identifies significant risk areas, including lease events (break options and lease expiries) and mitigation measures that are, or will be put, in place.

2.3         The Asset Investment Strategy comprises the main report, together with the amalgamated portfolio business plan numbers for the next 5 years contained within Appendix 1.  Appendix 2 provides a summary of the key targets and CAPEX requirements for 2025/6 with short form reports on each asset, contained within Appendices 3 to 12.   Please note that Summit Centre is excluded from reporting due to its imminent sale.

 

3.            Next Steps

3.1       The Investment and Regeneration Portfolio is currently being managed with focus on those priorities set out in the Asset Investment Strategy and in accordance with the methodology in the Asset Management Plan 2024-2028, so no operational changes are needed in light of this report.

4.            Options analysis and proposal

4.1         Note the content of the Asset Investment Strategy, which summarises the objectives of each individual asset’s business plan as approved by committee between January and March this year. This is the recommended option.

4.2         Request changes to the Asset Investment Strategy. This is not the recommended option as the Business Plans which feed into the Asset Investment Strategy have already been approved and the Asset Investment Strategy is a summary of these individual documents.

5.            Financial management comments

5.1         The Asset Investment Strategy within Appendix 1 (and within the individual asset reports) sets out the financial implications of the various opportunities and threats facing the individual assets and the portfolio as a whole and contributes to the Council’s medium term financial planning.

6.            Risk management comments

6.1         The Asset Investment Strategy forms part of the wider Asset Management Strategy and Plan.  Without the Council having an agreed Asset Management Strategy that sets out how it will manage its land and property portfolio there is no agreed mechanism for decision making and benchmarking property performance.

7.            Procurement comments

7.1         None.

8.            Legal comments

8.1         The Council has a statutory duty to deliver best value across all of its property portfolios (Local Government Act 1999).

9.            Other considerations

9.1         None.

10.         Equality and Diversity

10.1      None.

11.         Sustainability/Climate Change Implications

11.1      These are addressed within the reports contained within Appendices 1 – 12.

12.         Timetable for implementation

12.1      Immediately, if approved.

13.         Contact

13.1      Sian Bowen, Principal Asset Manager s.bowen@spelthorne.gov.uk

 

 

 

Background papers: There are none.

 

Appendices:

 

Appendix 1 – Asset Investment Strategy – Main Report and amalgamated business plans

Appendix 2 – Key targets for 2025/6 summary

Appendix 3 – BP Campus, Sunbury

Appendix 4 – Elmbrook House, Sunbury

Appendix 5 – 3 Roundwood Avenue, Stockley Park

Appendix 6 – World Business Centre 4, Heathrow

Appendix 7 – 12 Hammersmith Grove, London W6

Appendix 8 – Communications House, Staines

Appendix 9 – Charter Building, Uxbirdge

Appendix 10 – Porter Building, Slough

Appendix 11 – Thames Tower, Reading

Appendix 12 – Elmsleigh Shopping Centre, Staines

Appendix 13 – Amalgamated Numbers