Agenda and minutes

Venue: Committee Rooms, 2nd Floor, West Wing, Guildhall

Contact: John Cater  Email: john.cater@cityoflondon.gov.uk

Items
No. Item

1.

Apologies for Absence

Minutes:

Apologies for absence were received from Michael Hudson, Dhruv Patel OBE and David Brooks Wilson.

 ...  view the full minutes text for item 1.

2.

Members' Declarations under the Code of Conduct in respect of items on the agenda

Minutes:

Alderman Gowman declared a non-pecuniary interest in ITEM 13 as a Governor of the Museum of London.

 

Christopher Hayward took no part in the discussions in ITEM 10 because of the potential non-pecuniary conflict he has as Chairman of the Planning & Transportation Committee - which would be considering a new planning application for 1 Leadenhall.  Alastair Moss confirmed he would not be voting on the application as a Member of the Planning & Transportation Committee but would be considering the new lease terms as a Member of PIB.

 

 ...  view the full minutes text for item 2.

3.

Minutes pdf icon PDF 79 KB

To approve the public minutes of the Property Investment Board meeting held on 13 June 2018

 

 ...  view the full agenda text for item 3.

Minutes:

RESOLVED – That the public minutes of the meeting held on 13 June 2018 be approved.

 ...  view the full minutes text for item 3.

4.

Economic and Property Market Presentation by Kevin McCauley CBRE

Minutes:

Kevin McCauley, Executive Director, Head of London Research at CBRE delivered a presentation on the London office market.  

 

Members posed several questions to Mr McCauley:

 

What was the outlook for rent free periods?

Rent Free periods were increasing, it was not uncommon to see 10-year leases including a 21-24 month rent free period.

 

What are the medium-term challenges?

·         Keeping up with demand in light of a decrease in available debt finance, availability of viable locations in Central London and more stringent environment for approvals of planning consent

·         Infrastructure being developed by competitors (particularly around transport and housing), the key competitors were Dublin, Amsterdam and Frankfurt

·         Brexit – specifically, the impact of services being outside the future EU-UK trade agreement, currently CBRE were seeing a slow drip feed of international corporations with relocating some staff or choosing not to expand in London as Brexit headwinds were increasing up to March 2019. Interestingly, Fintech was continuing to grow in London. Canary Wharf was at the sharp end of any retrenchment by traditional Financial Services firms in the UK

 

Will the City’s employer demographic change?

Too early to say in terms of big trends, all companies are looking at more flexibility of office space

 

Members and officers thanked Mr McCauley for his excellent presentation.

 ...  view the full minutes text for item 4.

5.

MIPIM property conference 2018/2019 pdf icon PDF 145 KB

Joint Report of the City Surveyor & the Director of the Built Environment 

 ...  view the full agenda text for item 5.

Minutes:

Members considered a Joint Report of the City Surveyor and the Director of the Built Environment.

 

Members queried whether the funding for the City’s future engagement at MPIM needed to be reviewed so BHE took less of the strain. The City Surveyor would return to the Board in the autumn with his thoughts on how PIB’s share of the MIPIM budget should be split between the three Funds.

 

Members were of the view that measuring the broad tangible outcomes from MPIM was generally difficult to define, however, The City Surveyor pointed to several examples of commercial lettings sealed at MPIM and other introductions made.

 

One Member suggested that this year’s event went well with much more of a co-ordinated approach and a better media presence, pointing to the launch of the joint City/CPA report and highlighting the very valuable work the Co-opted Members of PIB undertook on behalf of the Board.  

 

Members requested that the Chief Planning Officer does not attend future events - this was because there was a tendency for the event to be use for pre-application discussions and the focus of the event should be more strategic.

 

The Chairman requested that the diversity of the Corporation’s team should be more of a factor when considering which Members/Officers attend next year’s event.

 

RESOLVED – that Members approved the following:

 

I. That this report on MIPIM 2018 is received

II. That the additional cost of attending MIPIM 2018 be noted

III. That the Policy & Resources, Planning & Transportation Committees, and the Property Investment Board, approve that the City of London Corporation should attend MIPIM 2019 with a total budget of £94,000.

 

 

 

 ...  view the full minutes text for item 5.

6.

Questions on matters relating to the work of the Board

Minutes:

There were no questions.

 ...  view the full minutes text for item 6.

7.

Any other business that the Chairman considers urgent

Minutes:

There was no other business.

 ...  view the full minutes text for item 7.

8.

Exclusion of the Public

MOTION – That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A of the Local Government Act.

 

 

 

 ...  view the full agenda text for item 8.

Minutes:

RESOLVED – That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A of the Local Government Act.

 

 

 

 

 

 

 ...  view the full minutes text for item 8.

9.

Non Public Minutes

To approve the non-public minutes of the Property Investment Board meeting held on 13 June 2018

 ...  view the full agenda text for item 9.

Minutes:

RESOLVED – That the non-public minutes of the meeting held on 13th June be approved.

 ...  view the full minutes text for item 9.

10.

Leadenhall Market Presentation

Minutes:

Members received a presentation from the City Surveyor concerning Leadenhall Market.

 

 

 ...  view the full minutes text for item 10.

11.

City Fund, City's Estate & Bridge House Estates - Quarterly Delegated Authorities Update - 1st April 2018 to 30th June 2018

Report of the City Surveyor

 ...  view the full agenda text for item 11.

Minutes:

Members received a Report of the City Surveyor concerning the Quarterly Delegated Authorities Update - 1st April 2018 to 30th June 2018.

 ...  view the full minutes text for item 11.

12.

City Fund, City's Estate & Bridge House Estates: Vacant Accommodation Update as at 1st June 2018

Report of the City Surveyor

 ...  view the full agenda text for item 12.

Minutes:

Members received a Report of the City Surveyor concerning Vacant Accommodation as at 1st June 2018.

 ...  view the full minutes text for item 12.

13.

Museum of London Relocation - Project Update

Report of the Town Clerk

 ...  view the full agenda text for item 13.

Minutes:

Members received a Report of the City Surveyor concerning the Museum of London relocation.

 

 

 ...  view the full minutes text for item 13.

14.

City Surveyor Revenue Outturn Report 2017-18

Joint Report of the Chamberlain & the City Surveyor

 ...  view the full agenda text for item 14.

Minutes:

Members received a Report of the City Surveyor concerning the Revenue Outturn for 2017-18.

 

 

 ...  view the full minutes text for item 14.

15.

MSCI Annual Performance

Report of the City Surveyor

 

 

 ...  view the full agenda text for item 15.

Minutes:

Members received a Report of the City Surveyor concerning the results from the MSCI of the performance of the City Fund, City’s Estate and Bridge House Estates Property Investment Portfolios.

 

 

 ...  view the full minutes text for item 15.

16.

Actions between Meetings

Report of the Town Clerk

 ...  view the full agenda text for item 16.

Minutes:

Members received a Report of the Town Clerk concerning the recent approvals undertaken under delegated authority and/or urgency procedures.

 ...  view the full minutes text for item 16.

17.

Delegations sought during the Summer recess

To be tabled at the meeting

 ...  view the full agenda text for item 17.

Minutes:

Members received a Report of the City Surveyor concerning delegations sought during the summer recess period.

 ...  view the full minutes text for item 17.

18.

City's Estate - Letting Strategy for Commercial Offices at Smithfield Market acknowledging the Strategic Review of the City's Wholesale Markets

Report of the City Surveyor

 ...  view the full agenda text for item 18.

Minutes:

Members received a Report of the City Surveyor concerning the letting strategy for commercial offices at Smithfield Market.

 

 

 ...  view the full minutes text for item 18.

19.

City's Estate (SPE) - Nicholls & Clarke Site - Variation to existing Option Agreement for Long Lease Redevelopment

Report of the City Surveyor.

 ...  view the full agenda text for item 19.

Minutes:

Members considered a Report of the City Surveyor concerning the Nicholls & Clarke site.

 ...  view the full minutes text for item 19.

20.

City's Estate - Letting Report AMENDMENT TO THE PROPOSED LEASE: Part Ground & Basement, 55 Charterhouse Street, London, EC1M 6HA - Reversionary Lease

Report of the City Surveyor

 ...  view the full agenda text for item 20.

Minutes:

Members considered a Report of the City Surveyor concerning 55 Charterhouse Street.

 ...  view the full minutes text for item 20.

21.

City's Estate - New Broad Street House - 35-41 New Broad Street & 81-89 Old Broad Street (Rent Review as at 25 September 2015)

Report of the City Surveyor

 ...  view the full agenda text for item 21.

Minutes:

Members considered a Report of the City Surveyor concerning New Broad Street House.

 

 ...  view the full minutes text for item 21.

22.

City Fund - Lease re-gear of 23-25 Leadenhall Market, London, EC3V

Report of the City Surveyor

 ...  view the full agenda text for item 22.

Minutes:

Members considered a Report of the City Surveyor concerning 23-25 Leadenhall Market.

 

 ...  view the full minutes text for item 22.

23.

City Fund - Arrears Write Off

Joint report of the Comptroller and City Solicitor and the City Surveyor

 ...  view the full agenda text for item 23.

Minutes:

Members considered a Joint report of the Comptroller and the City Solicitor and the City Surveyor. 

 ...  view the full minutes text for item 23.

24.

City Fund - 65 & 65a Basinghall Street – Future Opportunities

Report of the City Surveyor

 ...  view the full agenda text for item 24.

Minutes:

Members received a Report of the City Surveyor concerning 65 & 65a Basinghall Street.

 

 

 ...  view the full minutes text for item 24.

25.

Bridge House Estates - 181 Queen Victoria Street - Major Refurbishment and Renovation

Report of the City Surveyor

 ...  view the full agenda text for item 25.

Minutes:

Report of the City Surveyor concerning 181 Queen Victoria Street.

 ...  view the full minutes text for item 25.

26.

Bridge House Estates - 64/65 London Wall - Roof Re-covering and Replacement

Report of the City Surveyor

 ...  view the full agenda text for item 26.

Minutes:

Members considered a Report of the City Surveyor concerning 64 & 65 London Wall.

 ...  view the full minutes text for item 26.

27.

Bridge House Estates and City Fund - GLA Roads - Progress update with Transport for London

Report of the City Surveyor

 ...  view the full agenda text for item 27.

Minutes:

Members received a Report of the City Surveyor concerning the GLA Roads dispute with Transport for London.

 

 

 ...  view the full minutes text for item 27.

28.

Non-Public questions on matters relating to the work of the Board

Minutes:

There were no questions.

 ...  view the full minutes text for item 28.

29.

Any other business that the Chairman considers urgent and which the Board agrees should be considered whilst the public are excluded

Minutes:

There was no other business.

 ...  view the full minutes text for item 29.