Decision Maker: Leader of Council
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Approve the purchase of a ‘Stream 1’ investment property for up to £13,000,000 plus purchaser’s costs of 6.17%.
The decision has been considered previously by members of the Property Investment Governance Board and the Lead Cabinet Member for Finance on 25th February and 4th March 2019.
To proceed with the purchase of 140 Cambridge Science Park for £13,000,000.
The Investment Strategy has 3 requirements for a Stream 1 property –
1. Minimum weighted score of 100 from the investment criteria matrix. The high quality of the proposed investment is illustrated by the weighted score of 150, which comfortably exceeds the minimum.
2. Net initial yield of 5% after allowance for purchaser’s costs. The net initial yield is 5.63% after purchaser’s costs and so this requirement has been satisfied.
3. Be accompanied by a full business case. At the meeting of PIGB on 4th March Carter Jonas presented a market appraisal and valuation report which supported the purchase of the property for £13m.
The proposed investment has satisfied the requirements of the Investment Strategy and is consistent with its aims. Therefore, the acquisition is deemed a suitable and prudent investment for the Council.
The other option would be to not buy the property. This has been rejected as the property meets the requirements of the Investment Strategy.
Urgent item?: Yes
Publication date: 14/03/2019
Date of decision: 11/03/2019