Delivering strategic change for Brentwood Council
Brentwood Council were looking to promote the use of their local authority powers, property assets and income streams to secure sustainable revenue and meet their regeneration objectives.
The council sought a supplier who could oversee the delivery of strategic change. With a specific focus on asset development programmes, establishing a local authority trading company and creating a property services asset register.
Through NEPRO, Brentwood Council were able to compliantly procure Bloom accredited supplier, J C Gill and Co Limited (JCG). JCG has an extensive background in delivering asset management and commercialisation projects across the public sector.
£ 1 bn Investment company established
“Bloom provided a fast and compliant route to market. Allowing us to promptly begin work on the project and deliver the desired outcomes.”
Julie Gill, Director, J C Gill and Co Limited
Brentwood Council approached Bloom looking to appoint a project lead and strategic advisor to deliver strategic change for the council in relation to the asset development programme, the local authority trading company and property services asset register.
The successful supplier would be required to establish a development, investment and optimisation programme that quickly delivered a portfolio of income generating assets and capital receipts to support the council’s growth agenda.
Whilst also respecting the Brentwood Council’s residents, businesses and taxpayers. The chosen supplier needed to act in line with the ethics and values of the council. In order to deliver this the appointed project lead, needed to:
- Scope out and procure, the most appropriate delivery vehicle to deliver the Council’s Asset Development programme.
- Lead and advise on the setting up of a Local Authority Trading Company.
- Lead and advise on the efficient and effective set up of an appropriate Property Services Asset Register to fully understand the size of the prize.
Through Bloom and the NEPRO framework, Brentwood Council were able to award the project to J C Gill and Co Limited (JCG) with an OJEU compliant procurement. JCG could then lead the project and provide strategic advice to the council.
JCG established an asset development programme with the appropriate corporate asset management governance to manage the council’s property assets and to oversee three core workstreams.
A £1bn Joint Venture partnership contract and framework agreement was scoped out and procured.
The contract was awarded to Morgan Sindall Investments Ltd, through Seven Arches Investments Ltd, the council’s trading company. The vehicle will be a further mechanism for securing cash and revenue flows to the council to aid the delivery of development objectives and housing.
Seven Arches Investments Ltd is wholly owned by the council and was established to realise the benefits for the residents of Brentwood, through the provision of significant financial returns.
The business is actively engaged in development and investment activity across the UK. JCG also created an accurate and up to date property asset register which has allowed the council to fully understand its asset base and potential.
The work of JCG now generates capital and revenue returns from the council’s asset programme in line with their growth agenda.
Through developing, investing and optimising a portfolio of income generating assets the project is on target to deliver a target overall return to the council of at least £500,000 per annum with the ultimate goal of covering the council’s projected revenue deficit.
JCG successfully developed a portfolio approach that balanced risk and reward across a portfolio of assets within a robust governance framework. JCG was also able to create and utilise a series of approaches that were in line with the council’s corporate strategy whilst maximising income return.
The council can now use its borrowing powers to invest in asset-based transactions targeting financial return. Subject to due diligence and appropriate risk management.
In addition, the new joint venture, which will be known as Brentwood Development Partnership is up and running and working quickly towards achieving its initial business plan objectives.View PDF: Brentwood Borough Council & J C Gill and Co Limited