Bristol City Council Corporate Property Strategy 2020-2023
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Bristol City Council
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Corporate Property Strategy
2020–2023
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Foreword by sponsor
Contents
Bristol City Council is the owner and occupier of a diverse and valuable estate. Land and
3 Foreword by sponsor buildings are used to support purposes including:
4 Vision •• Delivery of core and non-core council services through the development and adoption of a
•• Development including new housing corporate landlord methodology and the benefits
6 Executive summary of such an approach. This methodology will
•• Investment to support the revenue budget support the development of more effective
7 Introduction
•• Community resilience and sustainability corporate governance for property assets and
11 Equalities impact create a more integrated approach to asset
Bristol recognises that the effective and
management and partnership working.
12 Background and context efficient use of its extensive property estate is
fundamental to delivering exemplary public The strategy applies to all property except for
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18 Data systems and managing services and that an effective strategy including housing which is part of a separate piece of
information detailed asset management planning is key to work by the council’s Housing Service. It does
achieving this in order to preserve its financial and not include Transport operational property (i.e.
20 Barriers to effective estate social value for future generations. roads, traffic lights, parking meters, street lights
management etc.) nor does it include docks infrastructure
AF This strategy is designed to set out the objectives,
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including moorings, pontoons, harbour walls.
22 Corporate landlord policies and process for managing the estate
It does however cover buildings such as offices,
effectively and meeting the council’s corporate
27 Asset Management Plan objectives.
warehousing, etc. that are occupied or traded by
these services.
31 Modern workplace objectives The strategy emphasises the importance
It is expected that once adopted, in the absence of
of translating service objectives into asset
32 Glossary major policy change, the strategy will be reviewed
management plans and sets out the principles
in three years’ time to identify any opportunities
33 Appendix 1 for the creation of an overall Corporate Asset
to review arrangements or processes.
Management Plan which sets out the options and
35 Appendix 2 objectives around individual properties.
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Councillor Craig Cheney
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This document sets out the way in which effective Designated Deputy Mayor with responsibility for
asset management planning will be sustained Finance, Governance and Performance
If you would like this information in another
language, Braille, audio, large print, easy
English, BSL video or plain text please contact
equalities.team@bristol.gov.uk
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
An efficient and adaptable estate that supports service delivery
WHAT Fit for Purpose Value Supporting Supporting
Estate for service City Growth
Money delivery & Communities
WHY Assets are in the Costs are Sufficient and To use the
right place, in the minimised and suitable assets to estate to deliver
right condition use or return deliver services BCC corporate
and comply with from assets is from objectives
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legislation maximised
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HOW Understanding Corporate Working with Utilising
service Landlord approach services through council land to
requirements to provide Property bring forward
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regular property •• Centralised approach to the city
reviews. management understand
requirements Engagement with
Development •• Clear decision major projects
Vision of maintenance making Developing
and property framework service asset Working with
compliance plans. management public sector
•• Corporate plans partners and
Robust process and other stakeholders
This strategy sets out our objectives for the way we hold, transact and maintain Bristol
management policies Adoption of within the city to
City Council’s property estate as custodians for all of the city’s residents and stakeholders. information corporate identify shared
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It sets out how we will achieve an efficient and adaptable estate, which will: •• Uniform decisions opportunities
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standards
•• Provide the right property, in the right place, •• Ensure that development or restructuring
that is fit for purpose and economic to occupy. within our estate is fully compliant with the Understanding
objectives and requirements of the Local of the estate and
•• Deliver value for money property services to how it performs
support service needs whilst meeting the Plan and thereby meets the council’s growth
council’s corporate objectives. agenda. Rationalisation of
•• Optimise the value of our investment portfolio. the estate
•• Fully implement a Corporate Landlord model.
•• Ensure that the Estate is compliant with •• Use our assets to support regeneration, to
statutory and regulatory codes deliver our housing objectives and deliver KPI Improved Reduce running Improved Successful
vibrant and sustainable communities through utilisation % costs feedback from partnerships with
•• Ensure that in developing new properties and the opportunities outlined in our Community
services and key partners and
Increase in shared Reduce size of the service users the community.
maintaining or improving our existing estate Asset transfer policy detailed later in this buildings estate
that we have regard to their environmental report. Service asset Use of assets to
impact. Reduce required Increased capital management demonstrate best
•• Work with Public and Third Sector partners to maintenance receipts
•• To take advantage wherever possible of the plans in place practice
achieve opportunities to deliver “joined up”
opportunities offered by initiatives such as City services from shared buildings.
Leap to support our proposals to be a Carbon
Neutral City by 2030.
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Executive Summary
This strategy sets out the methodology as to how Bristol City Council will actively review,
manage and transact property going forward.
It is written having regard to current statutory Outcomes are therefore:
and corporate priorities and requirements in order
1 A
fully operational corporate landlord which
to ensure that all property dealings meet best
centralises all property functions
practice, as described by both the RICS and CIPFA.
In this way we will ensure that all transactions 2 A
revised system of governance that is
comply with current and best practice, and understood by all and improves the current
provide the best outcomes for the council and its decision making processes.
stakeholders.
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3 C
onsolidation of existing policies around
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The strategy will review the current system of property.
Governance for Property matters and will detail
where within the organisation this governance 4 E
nsure that all property transactions take
responsibility sits. It will propose revisions to the account of social value in assessing their
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current process in an effort to speed up, codify impact.
Introduction
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and simplify the process going forward. This is
illustrated using the revised decision pathway 5 E
nsure that there are clearly defined
map. responsibilities and mechanisms for all property
matters. Bristol City Council’s Property Strategy sets out the framework for Review, Management
The strategy ensures that the council fully and Transacting a Corporate Estate that excluding housing, transport and docks
adopts the corporate landlord system of working 6 A
complimentary financial framework which infrastructure is valued at approaching £1bn(1) and has an annual revenue spend of
and strengthens the governance around its recognises the need for budget centralisation
almost £20m(2) .
implementation. This document provides the and adjustments to ensure all Property spend
mandatory procedures that will be adopted for is managed by Property and is adequately The strategy respects our Strategic Themes and Well Connected:
reflected in appropriate cost centres Key Commitments as set out in the Corporate
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transacting council owned property.
Take bold and innovative steps to make Bristol a
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Strategy 2018–2023. These Themes are
Finally the report sets out the approach to the joined-up city, linking up people with jobs and with
summarised below and further detail may be
preparation of a detailed Asset Management Plan each other.
found at: www.bristol.gov.uk/policies-plans-
that with the help of service partners will define strategies/corporate-strategy
the Estate in terms of emerging service priorities Wellbeing:
going forwards. Empowering and Caring: Create healthier and more resilient communities
where life expectancy is not determined by wealth
Work with partners to empower communities and
or background.
individuals, increase independence, support those
who need it and give children the best possible One of the six key principles for the council as
start in life. set out in the Corporate Strategy is that we will
“Use our assets wisely, generating a social and/or
Fair and Inclusive: financial return. Raise money in a fair but business
Improve economic and social equality, pursuing like way.”
economic growth which includes everyone and
making sure people have access to good quality
learning, decent jobs and homes they can afford.
(1)
Total Estate
(2)
Excludes Housing Properties and Schools.
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Other key reference documents are: What comes within the ambit of •• Unless there is a demonstrable reason for In order to deliver these objectives, the council will:
retention (either in its existing use or for re-
Medium Term Financial Plan: the strategy? a. Fully implement a corporate approach to
purposing) then steps will be taken to declare
https://www.bristol.gov.uk/ All property related activities are covered by the the property surplus and available for disposal property.
documents/20182/138089/ strategy including but not restricted to: in accordance with the surplus property b. Raise the profile and reputation of the Property
Medium+Term+Financial+Plan.pdf/8c63db70- protocol, where viable. Service within the Corporate Structure.
•• Property acquisitions, both leasehold and
473c-bfd6-ed07-49a323a71547 and; •• The estate is an appropriate size from which to c. Work with services and partners to understand
freehold
deliver services, and is financially sustainable. their needs.
Capital Strategy: •• Property disposals (including sub-letting)
•• Buildings are in the right place and are d. Improve, release, adapt or replace properties to
https://democracy.bristol.gov.uk/documents/ •• Change of Use
affordable to meet the needs of the council and meet council needs and to regularly review as
s27694/Appendix%20A4%20-%20Capital%20
•• Accommodation moves and space allocation support service delivery in the most efficient these needs evolve.
Strategy.pdf
•• Sharing with, or use by, other users/third way possible.
e. Continue to carry out regular valuations
This strategy aligns the council’s business and parties •• The investment portfolio is well managed to (including those for accounting purposes) of
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property strategies to support its key goals and provide an adequate and appropriate return on
•• Carrying out alterations or improvements our property assets.
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inform its spending decisions. It will incorporate capital employed and minimise voids.
and codify several additional policies and •• Entering into contracts relating to property f. Ensure consistency of approach by centralising
e.g. telecoms contracts •• Where there is clear rationale, to add to the property decision making and budgets
strategies where they touch upon, or are touched
investment portfolio to increase net income in and reviewing pathways to ensure that all
by property. These existing strategies and policies •• Granting Access/Wayleaves or Easements support of the council’s revenue account. decisions involving the use of assets are made
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have been reviewed prior to incorporation. They
•• Agreeing rent reviews and/or lease renewals
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include: •• That the Development/Regeneration portfolio for the good of the council as a whole and its
•• Asset challenge and property review is utilised to support corporate priorities, stakeholders.
•• The Surplus Property Policy particularly those in relation to increasing g. Ensure that there is a strong rationale for the
•• Asset performance standards, including space
•• The Community Asset Transfer Policy the supply of affordable new homes and the ownership and retention of property and that
and design standards
aspiration to cut emissions by 65% by 2020 any disposals achieve best value and have regard
•• The Modern Workplace Programme •• Asset performance analysis and reporting from the 2005 baseline and to run entirely on to the obligations set out in Section 123 LGA.
•• Investment Property Strategy •• Strategy development clean energy by 2050.
h. Undertake regular property reviews as part of
Bristol City Council recognises that as the largest •• Supporting service occupiers to identify their •• That buildings are fit for purpose, well the asset management planning process to
land-owner in the city it is in a unique position to strategic asset requirements maintained and the cost of occupation and the ensure that the portfolio is efficiently used and
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work with partners to lead and deliver strategic environmental footprint is minimised meets the needs of services.
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•• Property will be declared surplus in accordance
regeneration. (see below).
with the council’s surplus property protocol. i. Challenge Services and partners to
Once declared surplus the proposal will follow •• To ensure that council services are readily demonstrate the need for the property that
However, in the face of continual financial pressure,
the decision pathway set out below. accessible for their users. they occupy and to work with them to achieve a
the council needs to review the size and efficiency
of occupation of the estate and this Strategy sets •• To work with partners to maximise the efficient value for money Public Sector Estate.
The key objectives of this strategy are to
out a framework for the preparation of a detailed ensure that: occupation of the Public-Sector Estate. j. Ensure that decisions fully take account of their
asset management plan, which will give effect •• To ensure that communities are supported with environmental impact and wherever possible
to this review and facilitate effective ongoing •• There is a mechanism in place to examine the to take advantage of opportunities offered by
suitable and sufficient property from which to
management of the estate. justification for the retention by the council of initiatives such as City Leap to improve our
deliver local services, in accordance with the
each property that forms part of the estate. The carbon footprint.
CAT policy.
The strategy sets out the high level aspirations for council will only retain property that is used to
an effective property operating model the detail k. Achieve the adopted Carbon Neutral target.
deliver services or for which there is a clearly
of which will be set out in the asset management defined reason to retain, e.g. the investment l. Will take account of Social Value in all of its
plan which will be developed in 2020. An effective estate or land held for development. In this property dealings by using the nationally
Corporate Landlord requires Estates teams to work case there will be a statement recorded on the recognised Social Value Toolkit that is currently
closely with FM teams, particularly the Building property database that will also define a date being trialled. This may result in a lower price
Practice to offer a joined up property service, as for review of this reason. being secured in certain transactions where
well as working closely with service heads and the non-financial benefits of the transaction
building occupiers to understand their strategic justify this.
property requirements.
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Environmental Impact
The environmental impact of everything that •• On any new letting of council owned property
we do is becoming more significant as time we will point out to incoming tenants the
goes by. There are a multitude of opportunities availability of benefits arising from switching
to reduce this impact when it comes to owning energy supplier to Bristol Energy and of any
and managing property. The council will do associated benefits available under the City
everything that it can to take advantage of these Leap initiative.
opportunities including; The council will as part of the Asset Management
•• A commitment for all our properties to Process, continue to monitor and improve where
meet applicable Minimum Energy Efficiency possible, council owned / occupied buildings
Standards environmental impact and it will work with
partners including Bristol Energy and the City
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•• Offer to actively facilitate discussions between
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Leap initiative to ensure the use of the most
the City Leap Energy Partnership with long- environmentally friendly systems of energy.
term tenants of our properties with regard to
installing renewable energy generation and
energy efficiency measures on these sites
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Equalities Impact
Bristol City Council has a Public Sector Equality Implementing a corporate approach to property
Duty which requires us in the exercise of our will increase our oversight of the potential impact
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functions to have due regard to the need to: of decisions on citizens and staff with protected
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eliminate unlawful discrimination, harassment, characteristics, socio-economic inequality, and
victimisation and any other conduct that is sources of inequality that are not specifically
prohibited by or under the Equality Act 2010; covered by the Equality Act. This will allow us to
advance equality of opportunity between persons embed analysis of equality impact into property
who share a relevant protected characteristic policy and strategy development so decisions
and persons who do not share it; and foster good are made on the basis of the deepest possible
relations between persons who share a relevant understanding of their implications for equality
protected characteristic and persons who do not and inclusion.
share it.
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Operational properties comprise:
•• 733 buildings
•• c. 2,600 hectares of land
•• Value c. £540m
•• Property types include offices, libraries, schools, museums, parks, depots, crematoria, waste sites,
docks, day care, etc.
•• This includes 323 operational indirect (within this are c.106 long leases and c 104 Concessions – see
note below)
•• 410 properties support direct service delivery as shown in the following table.
Property Type Number
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Education (schools, children’s centres) 1211
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Residential (inc. service tenancies) 522
Offices 383
Background and context
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Store/Depot/Warehouses/Waste Facilities 42
Community, Youth clubs 11
Bristol City Council owns a significant amount of property and, by area, owns
approximately 40% of land in the city although a significant part of this is controlled by Sports facilities/Playground 7
third parties under long term leasing arrangements. They are therefore not within the
direct control of the council but do produce income in support of the revenue account.(3) Social Care 21
the portfolio, excluding council dwellings and infrastructure, consists of circa 3,840 assets. Libraries 274
The portfolio is divided between Operational and Investment assets:- Museums 11
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Cemeteries/Church buildings 11
Public Conveniences 22
Children’s Homes 8
OPERATIONAL INVESTMENT DEVELOPMENT
PROPERTY PROPERTY ASSETS Car Parks/Multi-storey 3
Misc. 37
1. Note – Schools are responsible for their own buildings management. However, they may “buy back” some repairs and
Value 539M Sites not required for maintenance services from the council.
Value 249M service delivery and
2,880 assets 2. These are residential properties that do not form part of the normal housing stock. They include caretakers, park keepers
730 assets suitable for development
2,637 ha site area and cemetery lodges that are let on service tenancies.
Income £13m >100ha 3. A significant piece of work is already underway in the form of the modern workplace programme. The Asset Management
Plan work to follow this strategy will take account of and build upon the MW work. A project team comprising officers from
The total asset value for the operational properties is mainly based on depreciated replacement cost. It is both Property and Facilities Management will be established to advance the work detailed in the AMP section.
not an indicator of potential sale value/prices. 4. Following community engagement a Library Strategy with pilot projects around the city is in production. Any opportunities
Some community buildings do not provide financial support to the revenue account.
(3) to co-locate services will be considered.
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Some assets are leased at below commercial The CPIP comprises two main asset groups: long Long Leasehold Investments
rents to voluntary and community organisations leasehold Investments and standard investments.
Freehold land assets over which long leases (typically >100 years) have been granted to an investor at a
and social enterprises (Community Assets). The portfolio is unusual by comparison to typical
percentage (gearing) of the market rent; the investor grants a further lease to an occupier of the land or
These assets are used by “not for profit UK institutional property investment portfolios for
building at the prevailing market rent.
organisations” to deliver services and benefits to two reasons. Firstly, the majority of the portfolio
their local residents, that would in some cases assets by value and income are long leasehold
otherwise be provided by the council. Benefits are investments, and secondly the portfolio is limited Description Value % of whole
investment portfolio
not necessarily seen as a financial contribution, to land and buildings within the boundary of The
but rather in terms of social value or indirect City of Bristol. Capital Value £190m 76%
savings to council services (see Community Asset
Transfer Policy). The CPIP is split within the council finance Gross Annual Rental Income £9m 70%
function into two areas: the majority of assets
Subject to the above, and going forward, unless transactions fall and income defined as Commercial Trading Yield 5% N/A
within the Community Asset transfer policy (attached), or there
is appropriate Cabinet authority to vary this requirement, then
Estate (CTA) and the balance comprising the City
Docks estate. The City Docks estate is currently Average Weighted Unexpired Lease Term 98 years N/A
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all disposals of property will be at best consideration. (Best price
(AWULT)
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obtainable in the open market). managed by the property team as property
manager, but the income received is remitted to Number of Properties 441 70%
Investment Property City Docks as a service. Going forward, this service
The information below gives an overview of the including budgets will be amalgamated into the Advantages Disadvantages
Corporate Landlord and separate arrangements
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investment estate and current management
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for recharging management fees will no longer be ✔ High security of income; 8 Income growth can be sporadic, depending on
arrangements. The Team dealing with this
required. ✔ Long term income; rent review periods, and building age;
portfolio are in the course of preparing a separate
strategy going forward and this will be presented ✔ Capital receipts can be unlocked during the 8 Long leasehold interests on their own; do
It should be noted that there are circa 4,000 other not enable the council to exercise a proactive
to Cabinet in due course. lifetime of the lease.
property interests on the Uniform Database – for influence over redevelopment activity unless
example wayleaves – that are not investment
Portfolio summary assets and produce only nominal income. This
they are able to “buy out” the head tenant and
any occupational leases.
The Commercial Property Investment Portfolio often leads people to assume – incorrectly – that
(CPIP) is a portfolio of non-operational property the number of properties capable of generating Standard Investments
held by the council to generate income to revenue or capital receipts within the investment
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Land or buildings let directly to the occupier of the land or building at the prevailing market rent.
support the council’s revenue budget. The estate
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estate is much larger than it actually is.
has been acquired and built up over many years
Description Value % of whole
and includes a wide range of property types of investment portfolio
varying quality.
Capital Value £60m 24%
Gross Annual Rental Income £4m 30%
Yield 7% N/A
Average Weighted Unexpired Lease Term 7 years N/A
(AWULT)
Advantages Disadvantages
✔ Rental growth more immediate (negatives do 8 Tenant covenant risk – particularly in secondary
also apply); and tertiary locations;
✔ Rental growth closely aligned to prevailing 8 Income security – weak in secondary and tertiary
market conditions and more easily captured. locations (where the council holds the majority
of these assets);
8 Management and holding costs high (compared
to long leaseholds).
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Existing portfolio management Current limitations on rental growth The property development activities are
contributing extensively towards achieving these
Long-term income growth is limited at present by
residential development objectives as well as
approach
two key factors
delivering commercial property development that
•• Lack of new capital to enable poorer performing creates further economic benefits, different types
assets to be traded, and of temporary and permanent jobs, significant
levels of revenue and capital income as well as
KEY OBJECTIVE 1 •• Lease provisions in some (older) leases may increases to business rate receipts.
limit rental increases at review.
To grow and improve long-term revenue income
The property development strategy is to maximise
Future portfolio management the long term benefits to the council, Bristol’s
•• The council uses the rental income from the portfolio to support its revenue strategy economy and local communities, thereby
budget.
Following recent work, supported by external enhancing the financial and social benefits from
•• The council sets annual revenue income performance targets for the portfolio and consultants, a Cabinet Paper will be brought to its development property portfolio. To enable this,
these are included in the council’s Medium Term Financial Plan (MTFP) which is Cabinet in 2020 (subject to Finance support) the council contracts with development partners
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monitored on a monthly basis with Finance. requesting a new capital allocation to improve to ensure its risks are minimised and benefits
•• The current MTFP sets a target increase in annual revenue of £0.5m per annum for existing CPIP income performance. maximised.
the period 2018-2022.
The proposal will outline the concept of how new Securing property developments by utilising
•• The council’s primary means of increasing income is by prioritising and completing capital can be used to: the councils property estate also delivers wider
AF all rent reviews, lease renewals and opportunities to re-gear long leases.
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regeneration opportunities within communities
•• Because the majority of the portfolio is held as long leasehold investments there •• Reposition the portfolio by selling smaller poor creating additional opportunities for jobs
are no comparable market benchmarks to measure income performance against quality secondary assets and replacing these economic prosperity and improved social value.
other similar funds. with fewer higher quality assets of higher value As the Corporate Landlord model is implemented,
and more surplus property within the councils
•• The running yield on the portfolio (net income relative to total capital value estate will be identified and from this, further
invested) is currently +5% which is considered strong performance given the low •• Support wider city growth (job creation and development and regeneration opportunities will
level of overall portfolio risk. increased business rates) and increased council arise.
revenue income in the medium/long term.
Surplus Assets
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Development Property
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When assets are no longer required for service
KEY OBJECTIVE 2 The council has a significant on-going delivery they will be declared surplus to the
development programme with potential for more
To reduce income risk than an additional 100ha to be brought forward
council’s requirements and disposed of or
redeveloped for alternative uses.eg affordable
in future years generating many jobs, capital and housing. Details of this process are given at
•• The portfolio is low income risk because the majority of assets are long leasehold, revenue income receipts. Appendix 1 “The Surplus Property Procedure”
which present no material risk of default (due to lease structure and income cover).
The council’s property estate which includes land
•• Long leasehold investments have no risk in terms of liability for building repair and
and buildings suitable for regeneration is a mix of
condition.
residential and commercial uses including offices,
•• The balance of the portfolio, comprising standard investments, has higher income hotels and retail.
risk in terms of tenant default.
The council’s residential development objective
•• Standard investments also carry income risk in terms of building condition and
is to deliver 2000 new homes by 2020 with 800
repair at the point that leases expire; the long-term approach to managing
being affordable homes.
standard investments is to try and replace as many as possible with a smaller
number of high value/quality assets (see Future portfolio management strategy
below).
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Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Data systems and managing Data Type Status Action required
General Info on: Complete
information location, type, service user, tenure,
site area, lease info,
Property Data and Systems Current projects impacting this area: Cost Information: Incomplete This information exists in the BCC
capital expenditure, repairs and Finance system but historically has been
Property data is mainly held in two separate •• The award of a single maintenance contract will maintenance, annual running costs difficult to retrieve and link to a specific
systems. IDOX Uniform is used for core property change the way building maintenance data is property. Changes to the Finance system
data (acquisitions and disposals, HMLR registration stored. for the 2018/19 year will enable property
and ownership, interests including leases staff to access this information.
•• The recent re-tender of the Asset Manager
and licences etc. [granted and held] and their
system for transport assets Condition Information: Incomplete Condition surveys will be required
associated rents), and CIPFA Asset Manager for
valuations and capital accounting information, •• Going forward existing data will be checked current condition, required for some of the estate. These should
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maintenance, projected spend identify current condition and required
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and for some property asset management and missing data recorded as part of the asset
data including condition survey data, asbestos management planning process. It is hoped that requirements maintenance together with projected
survey data, and the existence of other surveys eventually a suitable system will be identified spend over a five year period.
(e.g. glazing surveys, legionella surveys, fire risk so that information currently held in a number
Valuation Information: Complete Book Values (where required) and
assessments etc.).In addition to these systems of databases will be bought together into a
AF Capital Value (Book Value), reinstatement values are complete. Open
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property information is also held in an MS Access single place. reinstatement value, Market Value market values are not available for all of
database and on a variety of spreadsheets. the estate and will be carried out as and
Data Collection
when required.
Some of the issues associated with data and Bristol City Council holds data on its assets but in
systems are: some cases this requires updating and there is also Occupancy information: Complete This information is complete (for
1. The disparate nature of the datasets, data that has not been collected in the past that vacant / occupied and whether buildings) subject to a review of assets
will be collected as part of the asset management surplus to requirements noted as surplus.
2. The need to obtain data not currently collected planning process. This piece of work will need to
and to obtain updated data where necessary. be specified and resourced as we move forward. Utilisation Information: Incomplete This information exists for some parts
3. There is some degree of duplication of data- Hours of use, space used / vacant, of the portfolio (e.g. schools and offices)
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type of service delivery undertaken but will require collection for parts of the
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entry as we have two separate systems for our
portfolio where it is missing.
core data and our capital finance data.
4. The lack of integration and the complexity Suitability Information Incomplete This information exists for some parts
involved in merging data from the two datasets of the portfolio (e.g. schools and offices)
but will require collection for parts of the
portfolio where it is missing.
Statutory Compliance info: Incomplete This information is not currently held
Fire, Asbestos, Legionella, Gas safety, centrally and an exercise is being
Electrical, Safety lighting and glazing undertaken to bring the information into
etc. one place and identify and remedy any
gaps if they exist.
At this stage it is not intended to propose any new This work will identify shortfalls in available
systems for data retention. It is believed that the information, will cleanse existing information to
existing Uniform system can be used to better ensure accuracy and will inform the requirements
effect and we will not be able to give an informed of any new system going forward.
opinion as to future requirements until the Asset
Management Plan work has been completed.
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The Estates Service
For 2017/18, there was a level of property-related expenditure on the General Fund portfolio of Currently, the Property Teams fall under the There is a wide range of skills sitting within
c.£48.6M. (Including schools) 58% of this spend relates to the FM Service in the Communities Directorate responsibility of the Director of Economy of Place. the existing property function; the staff are
– although it should be noted that a significant sum is re-charged to other Service Areas. Below the Director there are teams and managers appropriately qualified to cope with issues that
dealing with three areas of responsibility being: arise. However, the increased workload created
In addition, the three property sectors secured capital receipts and revenue income as follows. by moving all property functions may impact
•• Asset Delivery and Strategy resourcing and this is considered later in the report.
Financial year 2017 / 2018 (£) 2018 / 2019 (£) •• Property Development
The Property Team will continue to monitor
Capital Receipts1 14,155,000 8,600,000 •• Property investment opportunities to secure external funding from
In addition, asset management activity occurs Central Government and other initiatives e.g. One
Revenue Savings2 556,000 3,893,000
throughout the council within the various teams Public Estate and City Leap. Suitability of schemes
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with responsibility for service delivery. for inclusion in these initiatives will be assessed by
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1. Excludes HRA receipts the relevant Senior Officers and applications will
2. Income reported against MTFS This strategy proposes to confine property activity be submitted promptly to ensure compliance with
solely to the Property and FM teams as set out deadlines. These applications will be project driven
Barriers to effective estate under the heading “Corporate Landlord”. to ensure that there is capacity within the teams
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management
•• Property currently does not feature highly •• The current governance structure for the
within the council’s still developing, corporate council’s property function is split across
structure. Responsibility for property functions, directorates.
excluding Facilities Management, sits within •• Some operational and strategic decision-
the responsibility of the Executive Director of making on property matters is taking place
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Growth and Regeneration, whose portfolio within directorates and service departments
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is extensive in addition to property. The FM without advice of the property team.
team currently sit within the responsibility of
the Executive Director of Resources. Facilities •• There is insufficient oversight and input from
Management covers a large number of services the Property Services teams. Consequently,
(including Fleet, Print and Mail) as well as there is no single point of responsibility with a
repair and maintenance of property. However strategic role to manage the Corporate Estate
Repair and Maintenance is primarily a property i.e. a Head of Property.
function and therefore the property elements of This can cause issues that are outlined in the
the FM service should be bought together into a section marked Corporate Landlord.
single Property Function under the supervision
of a single Executive Director and Head of
Property.
20 21Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Corporate landlord
What is a Corporate Landlord? Why a Corporate Landlord It is important that only people trained in property can transact property matters for
The concept of a Corporate Landlord is that The Corporate Landlord approach is designed to the following reasons:
the governance, decision making and budget enable a local authority landowner to utilise its 1 There is a myriad of property and health & safety legislation and regulation that needs to be
management around all property assets and assets to deliver better, more efficient services complied with and for which service managers are ill-equipped. It is unfair for them to be asked to
the responsibility for their management and to communities. carry the burden for legal compliance, when there is expertise elsewhere within the organisation
maintenance is carried out at a corporate and that is better suited to take on this responsibility. This includes.
strategic level, rather than at a service level. Under Corporate Landlord is the predominant model
in larger private sector organisations having i. Landlord and Tenant Act 1954
this model each service department are relieved of
the responsibility and accountability for both the significant property holdings due to its efficiency ii. Various Law of Property Acts
strategic and day to day decision making around in delivering corporate outcomes. Many Local iii. Housing Acts where there is a residential element
Authorities have recognised the benefits and
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land and property assets that they occupy or use
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already adopted this model. iv. Local Government Act 1972 – S123 and exemptions
in delivering their service.
v. Other duties including best value requirements
The function of the Corporate Landlord is to Corporate Landlord is endorsed by both CIPFA and
the RICS. vi. General Health and Safety legislation, Legionella, fire safety, gas and electricity certification etc.
ensure that service departments are adequately
etc.
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accommodated, to ensure that the future asset
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requirements for each service are identified vii. Procurement Regulations, both statutory and internal.
and procured and to maintain and manage the viii. The implications of the State Aid and unfair competition rules.
property assets in accordance with corporate
strategic priorities and standards and relevant ix. Certain property transactions must include a formal valuation undertaken by an RICS qualified
property and health & safety legislation. Registered Valuer. Several suitably qualified Surveyors form part of the Property Team.
x. Similarly CIPFA require valuations for financial reporting (including asset values) to be
Current position undertaken by an RICS qualified valuer. – The Property Team will ensure that following any
Bristol City Council has recognised the necessity transaction, that it is properly recorded.
of operating a Corporate Landlord model as this xi. Social Value Act – The council has to consider how property transactions can secure wider
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will ensure the most efficient use of property social, economic and environmental benefits.
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assets and ensure alignment with corporate
priorities, strategies and standards. This 2. B
y centralising the responsibility for property, it is possible to see the effect that one property move
document moves the council from an aspiration has on the remainder of the estate and where “gaps” need or can be filled, or where opportunities
to adopt the Corporate Landlord model, into the exist which can only be seen from a corporate perspective.
implementation phase.
3. T
he Corporate Landlord approach can deliver economies of scale in terms of capacity, procurement and
This phase will help to avoid strategic delivery
opportunities for co-location across an organisation and with other external organisations. This can
risks, budgets risks, premises maintenance and
ultimately lead to rationalisation that can only be achieved by taking a holistic view of property, thus
compliance risks, and reputational risks which
improving value for money.
are evident from the current arrangements. It
will also create and improve opportunities for 4. T
he cost of holding empty or under used property will be greatly reduced as the property team
more shared use assets, both internally and with identifies, in close consultation with service managers, sharing opportunities and inefficient
external partners and avoid the financial and land occupation and takes steps to dispose of surplus property.
ownership risks associated with third party use of
council premises. 5. T
here will be a clear focus on the use of land and buildings to deliver corporate priorities and
balancing competing demands for land and buildings.
22 23Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Achieving Corporate Landlord Budgets – Currently the council’s budgets that are Any transferred budgets will be ring fenced to The Corporate Landlord model will establish
utilised for property transactions are distributed support: clear internal links between each service and
Commitment – The council will fully commit to
across both centralised property functions and an identified property business partner, so that
commence implementation of the Corporate a) additional resource within property to
individual service areas, which allocate money there is close working at the earliest stages of the
Landlord with effect from the beginning of the undertake management of those corporate
and personnel away from “the day job” to make decision-making process.
2020/21 Financial Year. buildings and;
decisions on property matters.
The role of the property business partners will be
In taking these steps the council is able: b) the asset management plan process.
Service budgets will be jointly analysed by finance strengthened and reinforced to ensure that they
•• To unlock the value of assets, seek efficiencies business partners and the property team during work as closely as possible with service managers,
The movement of these budgets should not
through joint arrangements with public the next budget setting round and any spending to ensure that they:
impact on the council’s overall net property
sector partners and maximise private sector in relation to property provision will be re-
expenditure. However, the resulting Corporate •• Understand the business operating model and
investment. allocated to the Corporate Landlord.
Landlord budget will need to be re-based as it may key outcomes of the service area, and its overall
•• To support the delivery of the council’s The underlying principle of the Corporate prove difficult to identify property expenditure strategic direction
Corporate Plan and other corporate objectives Landlord model will be adopted, which is that from individual service budgets.
•• Are able to support service areas, so that there
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such as the local plan. all maintenance budgets will be transferred to
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These proposals may result in savings in the is a clear articulation of their property asset
•• To integrate thinking about property the Facilities Management service who will be requirements, both now and going forward
medium term as recommendations emanating
with financial, regeneration and other responsible for repairs and maintenance of all
from the Asset Management Plan are •• Understand where the property assets in use
considerations. council owned and occupied buildings. There
implemented. by service areas are falling short of expected
may be agreed exceptions to this principle where
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•• To manage and reduce risk around property. performance, both financial and non-financial
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circumstances make this appropriate. However, Under the Corporate Landlord model individuals
•• To be seen to act corporately (and rationally) in it is anticipated that the exceptions will be few and departments will not be able to sanction •• Are able to consider and analyse possible
relation to its property assets, being able to fully in number, and only apply where it is more premises moves, acquisitions, disposals, or repairs property solutions for service managers,
justify decisions made involving property. appropriate for these to be undertaken by the and maintenance etc. without the involvement of supporting them through option appraisal and
occupier, due to specific and local service delivery a member of the property team. business case development.
Governance – First and foremost, the
needs. Service Level Agreements which clearly
implementation of Corporate Landlord is about
define responsibilities for property maintenance
Governance. This model has the full support of
will be agreed with each service.
top tier Executive Directors, Mayoral and Elected
Member support and will be implemented Routine issues excluded, moves, lettings,
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accordingly across all services. alterations to the fabric of a property will all be the
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responsibility of the Corporate Landlord, to ensure
The Corporate Leadership team endorse
efficiency in the use of resources and consistency
the mechanisms contained in this strategy
in implementation and application of premises
for transacting or changing any matters or
standards.
issues, touching upon or involving property.
These instructions will be disseminated to the
whole of the council in accordance with the
Communication Strategy below.
24 25Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
Decision Making
Overall Governance for the Property Strategy and
➔ Through the revised Property Strategy
and the Asset Management Plan (AMP),
to ensure that the development and
Asset Management Plan
the shape and implementation of the Corporate
management of the council’s operational,
Landlord model is the responsibility of the Executive Against the backdrop of continuing reductions In accordance with CIPFA guidance, the asset
non-operational and commercial land and
Director of Growth and Regeneration. in Central Government funding, and as Local management plan will provide clear and
buildings is secured in line with the council’s
Government has to make increasingly hard measurable actions that will be implemented over
The Member sponsor is Cllr Cheney. corporate plan and that finance and delivery
decisions in respect of non-statutory functions, the short term, say three to five years, as part of
Strategic Property Group is the key forum for risks are mitigated and managed in line with
such as the closure of public amenities, it is delivering the property strategy. It will set out:
discussions and decisions on property related these plans.
important to understand:
matters and this is chaired by the Executive Director ➔ Where necessary, to provide a steer and •• what we need to do to deliver on the strategy
of Growth and Regeneration and attended by direction for physical asset and land related •• The function that each individual asset plays •• the specific activities or actions we will be
officers both from within property and from programmes/projects, ensuring integration within the corporate agenda; taking.
service areas. and alignment with corporative objectives. •• How changes within public service delivery may Once this strategy has been adopted it will
The Strategic Property Group is a Strategic Board ➔ Consideration of, and to provide a steer for impact upon the need for certain categories
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enable to council to move forward with the Asset
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within Bristol City Council. The purpose of this matters relating to the West of England of property and in turn, the impact upon the Management process to review the estate and to
Group is to drive the strategic review of the council’s Joint Assets Board (JAB), and One Public resources required to manage it; and implement the strategy. The process will involve.
Property Portfolio and a comprehensive refresh of Estate (OPE). •• Central Government prioritisation of greater
the Asset Management Plan, enabling effective
➔ To take delegated decisions as required, or collaboration between public bodies and the •• Information Gather and Review
decision making and ensuring alignment with the
AF refer decisions to the appropriate body. use of shared space and resources. •• Discussion with Services and other stakeholders
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wider objectives of the council.
Issues such as the “academisation” of schools, the •• Appraisal of data develop outline AMP
As per the terms of reference for the Strategic The Strategic Property Group also governs regionalisation of various social services and “back- recommendations
Property Group, its role on behalf of the Corporate the Operational Property Group, which was office” functions, the transfer of service delivery
Leadership Board (CLB) includes: established to tactically manage and advise on •• Develop an action plan for implementation
to the VCS and greater collaboration will result
the planning and use of the council’s Operational in a reduction in the Corporate Estate. This may •• Discuss with all interested parties including
➔ To act as the key forum for discussions
Asset Property Portfolio. The group assesses and in the short term reduce the resources required Members and Implement recommendations.
and decisions relating to the Corporate
advises on the use of property and land for the to manage the property estate, thereby releasing •• Review service AMPs on an annual basis or
Landlord function and the council’s land and
purposes of service delivery, back office functions additional resources to deliver transformation of when changes in service delivery are proposed.
property assets, including all operational,
and to manage property related projects and the estate and delivery of corporate and service
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non-operational and commercial land and Information Gather and Review
programmes. A key aim of the Operational outcomes.
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buildings.
Property Group is to promote collaboration and This will involve categorising properties as
➔ To oversee governance and property related standardisation across service areas and the Conversely, the need to increase the
described below and prioritising the order of
strategies and policies; including the achievement of best outcomes for the council. commercialisation of remaining services, such
review.
preparation of a revised Property Strategy to as Waste and Street Services, combined with
improve the overall efficiency of the estate, “Non-Property” decisions increasing direct income through ownership Review individual properties and key documents
deliver financial savings and to support (rent and service charges) and indirectly (Council (such as Title / leases, condition surveys, schedule
There are occasions when reports are prepared
regeneration and growth. Tax, NNDR, New Homes Bonus) and delivering of of expenditure both historic and proposed etc.)
that are not necessarily property decisions but
Central Government objectives such as housing, to pull out key aims and objectives/deliverables
➔ Ensuring linkages between strategic asset where the proposal may have an impact on the
will result in other areas of the council’s portfolio associated with the property for consideration
management work and the council’s capital estate. For this reason, the Head of Property will
growing and requiring new and additional
and revenue medium term financial plans. now be included as a consultee for all reports
resources. Opportunities will be sought to increase the
➔ Ensuring linkages between this Group and entered onto the decision pathway.
occupation of underutilised assets in order to
the council’s Capital governance regime The AMP process, from strategic planning to release surplus property for disposal as detailed
through the Growth and Regeneration delivery, will need to reflect these changes going elsewhere.
Board and Capital Board / CLB. forward and ensure that the right level of resource
and skill set is available to maximise returns, both The review will identify the following basic
➔ To oversee the preparation and delivery
financial and non-financial. information in respect of each property.
of the council’s Asset Management Plan
through the effective management of a •• Brief description, size and Location – possibly
robust corporate Asset Register. including a location plan.
26 27Bristol City Council Corporate Property Strategy | 2020–2023 Bristol City Council Corporate Property Strategy | 2020–2023
•• Tenure Property will engage with services at a strategic Appraisal of Data and outline AMP •• Modernisation – Disposal of some buildings
•• Current use - Occupier, may be department or level to ensure that AMPs are integrated with recommendations will free up capital and revenue to improve
third party strategic planning and budgeting. To be successful, retained property. This will ensure that they
a protocol for close working between Asset By reducing the number of assets there may are sufficient, fit for purpose, in good repair,
•• Number of users - this may be staff or service Strategy Managers in Property and a nominated be opportunities to make revenue savings or to and efficiently occupied whilst preserving an
users and will inform whether the building Service representative will need to be developed. achieve capital receipts. The liability for backlog environment in which staff are happy to work
is too big or too small for its existing use Service representatives will need to be at Strategic maintenance may also be reduced, enabling the and stakeholders are happy to visit.
(Suitability and sufficiency) Director or Senior Manager level for that service re-allocation of maintenance budgets to retained
assets. •• Rationalisation – In its most basic form this
•• Market value and have authority to develop and support options means reducing the overall size of the estate
to enable appropriate decisions to be made. This
•• General condition – this may be replaced with The council will use its estate to promote so that only those buildings that meet the
role will not be delegated without the authority above objectives are retained. To complete this
full condition survey. regeneration either by updating old and
of the Strategic Director and any delegation will however,
•• Options for future dilapidated buildings to make them better fit for
be to an individual of equivalent seniority to the a great deal of work is required to ensure that
purpose and to encourage other nearby occupiers
•• Cost (where relevant / available) person being replaced. This working arrangement services remain optimised.
to invest in their own buildings. By occupying
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will involve regular meetings, minimum three
•• There may be additional matters to be buildings, particularly offices, more effectively it •• Consideration will be given to opportunities
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monthly, throughout the year, not just at the
considered depending on the category of will not only reduce costs but also to improve the for sharing with other Public, Private and Third
start of the planning round and in particular, at
property, see below. working environment for staff. Sector organisations.
the contemplation stage of all new strategies
Where appropriate (including where information is and initiatives so that property matters can be Council owned land and buildings will be used as •• Rationalising will result in reduced overall cost
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currently missing) the information will be recorded considered early and at the appropriate level in the the catalyst to begin site assembly for larger scale of operation of the estate thereby releasing
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on the council’s existing database system. decision-making process. regeneration. finances to reduce backlog maintenance and
improve the condition of the retained property
Much of this information will already be known Service led Requirements for Property The Asset Management Plan will be based on the estate.
so in some cases, detailed inspection will not be & Related Services following key objectives.
necessary and may be confined to a cursory visit to •• Prioritise and implement a rolling programme of
assess condition. In some cases, however a more Requests from services for property related work •• Efficiency – To achieve an efficient estate that condition surveys. These will be used to assess
thorough assessment will be involved and may will generally arise through the AMP process and is in the right place, of the right size and the the backlog maintenance budget, advise the
require the support of officers in other teams. The will be subject to the decision pathway. right configuration to achieve effective service planned maintenance programme and assist in
information will be used to update that held on delivery. the decisions around property disposal.
There will be occasions when requests are made
the database and to inform the options appraisal
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This table indicates the priority by which the AMP
for ad hoc property work / advice and these
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for each category of property. will be undertaken
will be made via a standard request form (to
be developed / revised). These will need to be
Discussion with Services and other
validated by the nominated service representative
stakeholders and by property representatives through the
The property review work will be integrated with decision pathway. The intention is for all property
the development of service asset management requirements to be coordinated within Property so
plans and will fully involve staff from service services experience a joined up Property Service.
departments in order to ensure that retained (Moving hard FM to within Property will assist
buildings meet their needs. We will work with with this.)
services to ascertain whether the property is
suitable in terms of location, suitability and
sufficiency and where it is not we will work with
the service to find a solution. We will challenge
services as to the use of the premises that they
occupy and any solution must be acceptable in
both service and economic terms. It may involve
consolidation and / or re-provision with the
objective of obtaining the best solution for service
delivery while ensuring efficient and effective use
of assets.
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