Issue - meetings

Aylesbury Vale Estates (AVE) had been formed in 2009 as a 20-year Joint Limited Partnership (JLP), following a 15-month full OJEU procurement process.   It was a 50-50 partnership between the Council and private investors who collectively formed Akeman Partnership LLP.  Akeman Asset Management provided the day to day management of the portfolio with the ‘Board’ meeting formally every quarter with more informal monthly interim meetings.

AVE was required to present a rolling three year business plan for comment and sign-off by the Council as 50% shareholder.  Cabinet received a report and accompanying business plan which set out the strategy for achieving the core objectives of AVE (as agreed in 2009), during the plan period.  The detail of the plan was focused on the first year i.e. 2022/2023.  The strategy for years 2023/2024 and 2024/2025, would be kept under review to enable new opportunities and challenges to be responded to.  The report also summarised the performance to date in the current financial year.

RESOLVED –

(1)               That the performance of AVE against the current Business Plan and for the current financial year be noted.

(2)               That the AVE Board be asked to consider the comments made at this meeting on their strategy and business plan, in finalising their Business Plan for 2022-25.

Aylesbury Vale Estates (AVE) had been formed in 2009 as a 20-year Joint Limited Partnership (JLP), following a 15-month full OJEU procurement process.   It was a 50-50 partnership between the Council and private investors who collectively formed Akeman Partnership LLP.  Akeman Asset Management provided the day to day management of the portfolio with the ‘Board’ meeting formally every quarter with more informal monthly interim meetings.

AVE was required to present a rolling three year business plan for comment and sign-off by the Council as 50% shareholder.  Cabinet received a report and accompanying business plan which set out the strategy for achieving the core objectives of AVE (as agreed in 2009), during the plan period.  The detail of the plan was focused on the first year i.e. 2022/2023.  The strategy for years 2023/2024 and 2024/2025, would be kept under review to enable new opportunities and challenges to be responded to.  The report also summarised the performance to date in the current financial year.

The report detailed the background to the formation of AVE that was now over 12 years old and performing well.  The starting portfolio had been valued at £36.1m.  The starting portfolio had been valued at £36.1m, with the purchase financed by non-interest bearing loans from each member of £4m plus two loans from AVDC.  Details of loans provided and arrangements for their payback were detailed.  The current outstanding debt was just under £33m in line with the agreed amortisation schedule.

The council’s and private investors net asset value of their ownership of AVE had now risen to £17.020m from the original £8m investment which showed an annualised return to investors once distributions and set up costs were paid, of 16.93% per annum.  The portfolio was usually valued annually but this had not happened in 2020 due to Covid. At the end of March 2021, the portfolio had been valued at just under £44m. This was a slight drop from the 2019 valuation, attributable to value impairment of the Hale Leys Shopping Centre. However, the value of the Centre was expected to increase, as footfall builds following the various lockdowns, supported by the signing of a number of new lettings.

The report provided a summary of the 2021/22 Business Plan and performance to date.  The overall aim for the past few years had been to produce a self-sufficient portfolio, not reliant on sales, which paid all AVE overheads, all amortisation and distributed £600,000 pa whilst still retaining an annual profit.  Information was provided on:

·                     That strategy in 2021/22, as approved by the Council.

·                     The sale of high value/low income assets for reinvestment in the portfolio through redevelopment of current sites.

·                     The Development of key assets and renewal/upgrade of industrial stock.

·                     Target Distribution – a distribution of £600,000 would be paid in March 2022 as forecast.

·                     The vacancy level across the main multi-let industrial estate which had remained very low over the last three years at between 0% and 2% despite the pandemic.

·                     Hale Leys Shopping Centre – which had  ...  view the full minutes text for item 10