A property investment board has been set up by a city council to boost funds by being able to make decisions about buying and selling properties.

At a Gloucester City Council cabinet meeting on 21 June it was agreed that senior officers should have the power to investigate properties if there is an opportunity to invest, this is subject to the council agreeing to amend the capital programme and vary its treasury management strategy next month.

The council believed that the property investment strategy, which goes into detail about how to raise funds, has been put forward to help deliver the city council's draft council plan; this would help protect the council services into the future.

Leader of the council and cabinet member for Regeneration and Economy Cllr Paul James said: "Over the last six years the council has made savings in excess of £10million, however, like all local authorities, the council is faced with continued financial pressures.

"We have to make £1.65million of savings in the current financial year alone, and property investment will be a step which many other local authorities have taken; they have proved this can be a successful way to raise funds."

The city council has recently gone through a major reorganisation to make sure they are operating as efficiently as possible, the ability to identify alternative source of income the property investment strategy will potentially play a major part of future council budgets.

The council will go out to tender later this year for an external partner with property experience to help identify and assess potential acquisitions and to help manage its property portfolio, which might be as large as £75million in value within the next five to seven years.

Cabinet member for Performance and Resources Cllr David Norman said: "Although property investment is a risky business, we have been fully briefed on how the property portfolio will be managed and risks will be mitigated.

"We'll be taking expert advice from industry professionals to help inform the decisions and we can mitigate risks through very strict investment criteria.

"We have to diversify to help generate income in the future and we've spoken with other local authorities who have taken this approach and been very successful."

This cabinet decision gives the council the tools to start a process and will save time if they do find a good investment opportunity.

The money is likely to come from the council's own reserves or case-by-case loans from the central government Public Works Loan Board.

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