Agenda item

The Committee will receive an overview of the performance and Business Plans of the Council’s companies:

Aylesbury Vale Estates LLP (AVE)
Consilio Property Ltd
London Road Management Company
Buckinghamshire Advantage

Contributors:

John Chilver, Cabinet Member for Property and Assets

John Reed, Service Director for Property and Assets

Papers:

Companies overview

Confidential appendices

The Chairman invited the Cabinet Member for Finance, Resources, Property and Assets, Councillor J Chilver, to introduce the report. In the Cabinet Member’s presentation, the following points were highlighted:

·       The Council owned or had interested in four companies:

o   Aylesbury Vale Estates LLP (AVE)

o   Consilio Property Ltd

o   London Road Management Company

o   Buckinghamshire Advantage

·       Cabinet had recently agreed a new Shareholder/Member Committee be formed to act as the council’s shareholder. This Committee would monitor the activities of the companies and report back to Cabinet.

AVE

·       AVE was a 2009 joint venture with Akeman Property to manage the legacy Aylesbury Vale estate. The Council was 12 years into this 20-year arrangement.

·       The company was governed by a member’s agreement and a Board constituted by a 50/50 joint limited partnership with three members from each side.

·       Performance to date was positive with an asset increase from £8m to £17m with a return of investment of 17% per annum.

·       During the pandemic, the industrial estate had performed well whilst Hale Leys shopping centre was now recovering.

·       Planning applications had been approved at Rabans Lane and Stocklake.

·       In March 2022, the Council received a £340k dividend which was £40k over forecast. The strategy was for similar dividends to be paid over the next two years.

Consilio

·       Owned three properties:

o   Travelodge, Hemel Hempstead.

o   Offices, Milton Keynes.

o   Housing at Tatling End – 34 units of which 14 are affordable.

·       The company intended to enable the new development of residential property on surplus land on the council’s existing estate.

·       Consideration was being given to securing Registered Housing Provider status which would allow the company to manage lettings at Tatling End and make future affordable developments easier.

London Road Management Company

·       A not-for-profit company which recharged out the shared costs of the business park to all occupiers of the site.

·       Responsible for maintenance of the business park.

Buckinghamshire Advantage

·       The Council solely-owned the company following the withdrawal of Bucks Business First.

·       Its purpose was to promote the 500-acre Woodland site, Aston Clinton.

·       Outlying planning permission had recently been secured.

During the open discussion, Members raised the following points:

·       Hale Leys shopping centre had been acquired after AVE had been set up. As its sole purpose was a shopping centre, it was a separate company to AVE but did have the same management arrangements. The figures given in the report consolidated both these companies.

·       Consilio and London Road Management Company had two council officers as Directors. The appointment was based on officer suitability and there was no formal length of term.

·       AVE had three members on the Board (two Cabinet Members and one senior officer).

·       There were no specific concerns with the current companies’ governance arrangements however there had been national high profile cases (e.g. Robin Hood Energy, Nottingham City Council). The Government commissioned report recommended local authorities had robust governance arrangements which the Council was looking to implement. Members on company Boards would not be on the Shareholder/Member Committee.

·       Measures of success for AVE and Consilio were based on return of investment, dividends, positive cashflow and estate maintenance. Consilio had been affected by the pandemic due to its ownership of Travelodge but was now recovering.

·       Buckinghamshire Advantage was a single-asset vehicle and would now be negotiating with landowners following planning application approval. There had been delays due to Section 106 agreements and Environment Agency concerns at the canal.

The Chairman thanked Members for their questions in the open session.