Commercial Portfolio Review
Hull City Council required Cushman & Wakefield to develop a clear strategy to protect and grow the income from its non-operational portfolio and to provide continued financial support to Council services. The portfolio comprised around 1,400 assets including retail, office and industrial properties as well as a large ground lease portfolio.
The key challenges they faced were as follows:
- Core funding cuts impacting on all aspects of the Authority’s operations
- Establishing how to respond to funding cuts by maximising the capital value and income generated by the commercial portfolio.
Cushman & Wakefield’s approach to this commission included the following:
- Inception meeting with the Council to establish key aims and objectives
- Early engagement with NPS Humber, the Council’s managing agents
- Financial analysis by asset type to identify key issues and themes
- Workshops with Cushman & Wakefield’s investment and agency specialists to identify opportunities for acquisition, disposal and asset management opportunities.
The key output of this project was a report outlining our observations and recommendations to assist HCC in developing a detailed property strategy for the Commercial Portfolio. Our recommendations covered the following:
- The approach to asset management
- Acquisitions and disposals
- Re-gearing ground leases
- A four-stage plan for implementing the recommendations made.