TOWN Hall chiefs at Warrington are being urged to set up a Local Limited Liability Partnership to improve management and regeneration of its £250 million property portfolio.
The aim would be to maximise income generation opportunities and minimise costs to reduce the impact of cuts in Government funding.
Members of the borough council’s executive board are to be asked to approve the establishment of a joint venture Limited Liability Partnership (LLP) with PSP which is itself a joint venture between the family owned Williams Pears Group and the Winston Group.
The William Pears Group was set up in 1952 and has an annual turnover of more than £70 million and the Winston Group, formed in 1997, has a proven tack record of creating value from proactive property asset management.
Warrington Borough Council and PSP would each own a 50 per cent share of the LLP, whose main purpose would be to:
*To invest private sector funds into projects to maximise the return from the council ‘s property assets.
*To provide revenue income streams or capital receipts (if better value) for the council from the ongoing development of surplus land and buildings and the effective use of the investment portfolio.
*Take opportunities to strategically acquire land and buildings to augment existing council land holdings and provide opportunities for profitable development and or comprehensive regeneration schemes.
*Provide other tools to maximise the returns from the council’s land and property portfolio.
Deputy leader of the council, Mike Hannon (pictured), in a report to the executive board, said property was the council’s second most valuable resource.
Changes over the past six years had delivered significant changes. Rationalisation of the council’s office accommodation had saved the authority more than £500,000 every year. In total, an ongoing review of the property portfolio since 2009 and proactive management had delivered savings of more than £1.5 million in revenue expenditure every year and generated capi8tal receipts of more than £12 million from the sale of surplus properties.
But the increasingly challenging financial situation of all councils had led to the approach switching from selling off assets to retaining property assets an d seeking a net revenue stream.The council already has a joint venture around the former Wilderspool Rugby League stadium – Wire Regeneration.
PSP was already working successfully with 10 other councils and the venture would have significant advantages for the council. There would be no set up costs, the council would not have to put any money or land into the LLP up front.
The LLP would be an additional option for the council to use in dealing with investment opportunities – “another tool in the box.”
Even when established, the council will be under no obligation to put any property assets or projects through the LLP. It will remain free to partner with any other party.
Cllr Hannon added: “This is a tool that can provide a better net revenue stream from the council’s property portfolio.”
The executive board will receive another report in the future on the structure and membership of the LLP’s boards – before any property investment activity commitment.
