Decision details

Purpose of report: To present to Executive the due diligence undertaken to support the strategic acquisition of a city centre property portfolio as agreed by Executive on 13 July 2017, and to confirm the location of the asset and the final business case. The budget for the acquisition was recommended to full council on 20 July 2017.

Executive will be asked to agree to the contract completion of the acquisition of a city centre property portfolio from a budget established by Full Council on 20 July 2017.

Reason for urgency

An urgent item is needed to secure the purchase within the timescales set by the vendors.  If the due dilligence report does not go to the meeting of the Executive on 27 July 2017, then the next Executive in September is too late and the Council will have missed the commercial opportunity.

The confidential annex will contain information that is commercially confidential until the sale contract is complete when it will become public.

Resolved:  The Executive agrees:

                                 (i)       That subject to Full Council having approved on 20 July 2017 a capital budget of £15 million to make a strategic acquisition of a mixed commercial portfolio in York city centre; 

                               (ii)       To delegate to the Director of Customer and Corporate Services authority to complete the acquisition of the freehold of Swinegate Court provided that the findings of the due diligence process do not undermine the purpose of the acquisition; and

                              (iii)       To authorise the funding of the acquisition of the asset referred to in (ii) above and all related costs from the capital budget referred to in (i) above.

Reason:        To ensure the ongoing economic vibrancy of the city centre and increase the income from the council’s commercial property portfolio in order to achieve budget targets.