Decision details

The Cabinet Member for Finance and Assets reminded Cabinet that on 9^th September 2015, the Council had approved an allocation of £5,000,000 for the purposes of investment in commercial property as an additional revenue stream to support the Council’s budget.

A suitable property for investment purposes had now been identified within Horsham.  Details of the property, purchase price and rental income were provided in an exempt appendix to the report.  It was noted that the minimum target yield approved by the Council was 6% and that this investment, if approved, would produce a yield on cost in excess of that figure.

            RESOLVED

(i)         That the purchase of the investment property, as reported, be approved subject to the final details being agreed by the Director of Planning, Economic Development & Property in consultation with the Cabinet Member for Finance and Assets.

(ii)        That the Cabinet Member for Finance and Assets be authorised to approve the external valuation which has been commissioned.

REASON

The Council has approved the allocation of £5m for investment purchases and the property is a suitable investment for these purposes.