Cabinet received a report of the Interim Head of Regeneration and Property, which provided an overview of the current position in regard to the financial performance of Croxley Business Park.  It was noted that the report would be presented to Finance Scrutiny Committee on 10 September.

Councillor Johnson, Portfolio Holder for Property, introduced the item and provided highlights of the report.  He advised that the council was meeting all the assumptions on the site’s purchase.

The Interim Head of Regeneration and Property added that the acquisition modelling had been updated by Grant Thornton and it was now possible to run scenarios and get better predictions.

The Interim Director of Finance noted that the uplift in the finance lease had been less than 1% and not 2.5% as originally envisaged in the financial model.

In response to questions from Councillor Bell, Councillor Johnson responded that the vacancy rate for the industrial element had reduced from 25% to 17%.  The council’s property consultants had reported that the situation at the Park was the same if not slightly better compared to other similar business parks.

The Interim Director of Finance advised that the outstanding debt mostly related to one tenant.  Negotiations had taken place and it was gradually reducing.  The rent collection rate was in line with previous quarters.  In addition she confirmed that the funds from Columbia Threadneedle Investments could only be used for the purposes stated at purchase.

RESOLVED –

that the contents of the report be noted and that it will be shared with and discussed at the Finance Scrutiny Committee meeting on 10 September.