Commercial Partner and Client - DTZ Investors

£80million in commercial property investments by Basildon Council

In March 2017, Basildon Council approved the Commercial Asset Acquisition Strategy. This included approval to prudently borrow up to £80 million from the Public Works Loan Board in order to fund investment into commercial property across the UK. The strategy aims to generate £1.6 million, after costs, per year upon full investment of the £80m portfolio. The Council will also be in a position, as holder of a diverse property portfolio, to sell assets as and when appropriate in order to secure capital and repay any borrowing costs.

In order to ensure the successful delivery of the Strategy, and to mitigate the risks associated with limited experience and resources, the Council has partnered with specialist investment advisors DTZ Investors.

DTZ Investors have been successfully managing property investments in the United Kingdom since 1968, and currently manages circa. £8.7 billion in UK real estate in over 365 assets. Through establishing the partnership with a leading professional estates management organisation, the Council has ensured that it continues to protect the public purse whilst it endeavours to pursue new commercial ambitions.

Case Study

Basildon Borough Council's Commercial Asset Acquisition Strategy demonstrates the importance of balancing increased risk-taking with a higher return on investment.

This will be achieved by developing a diverse commercial property portfolio that strategically balances risk against reward. The strategy is supporting the Council to deliver this and helps reduce its reliance through the investment into and management of commercial assets.

Due to the fast nature of the property market and the increasing competition from other local authorities, quick decisions may need to be taken in order to put offers forward. However, this is not often a trait of public sector bodies due to various levels of autonomy and represented a clear challenge that the Commercial agenda has helped overcome. This has been achieved through a partnership with DTZ Investors and positive engagement with political members and the senior management team.

Portfolio

• £1.6m contribution annually to the Council's General Fund
• £80m investment portfolio
• Market leading advisors
• Bespoke scoring criteria
• Diversification of asset type
• 3 assets acquired to date.

Endorsements

"We are delighted that the Council has chosen to appoint DTZ Investors, having identified the benefit of implementing its investment strategy through an independent fund management platform. We look forward to working with Basildon Council on this exciting mandate and to contributing to the Council's wider objectives to create alternative sources of secure sustainable income."

Sam Brice, Director of DTZ Investors.

Further information and enquiries

• Visit DTZ Investors (opens new window)
• Request a callback from Commercial Services.
• For further information and enquiries see contact details below.