annual performance report 2016/17 - city property glasgow · • phase 2 expected to comprise grade...

Annual Performance Report2016/17

Annual Performance Report 2016/17 Annual Performance Report 2016/17 32 Annual Performance Report 2016/172

Organisational Culture

Strategic Objectives

Our strategic objectives are a response to the current economic climate and the broader financial challenges of the Council. They are to:

1. Increase the profitability of City Property thereby delivering sustainable long term returns to the Council.

2. Maximise the returns from the investment property portfolio.

3. Maximise disposal performance thereby delivering sustainable long term capital receipts for the Council.

4. Ensure high levels of stakeholder satisfaction.

5. Attract, develop, retain and motivate high performance individuals.

6. Continually improve performance.

To positively contribute to the city’s economic growth through sustainable property development and management.

Our Vision:

Our Values

Property is our business and our business is built on

RESPECTRegenerateExcellenceSustainabilityProgressiveEqualityCommunityTrust

Commonwealth House reception

Front cover image: Ladywell Business Centre

Annual Performance Report 2016/17 Annual Performance Report 2016/17 32

Welcome to the second issue of City Property’s Annual Performance Report.

I am sincerely proud of City Property’s successes and achievements throughout 2016/17 which are due in great part to our vision, values and true assets—our dedicated staff.

In order to be successful, organisations need to grow because the world moves forward at an ever-quickening pace and stagnation really means moving backward. Since the company’s very beginning, City Property has continued to demonstrate impressive results in terms of services provided, customer satisfaction, capital receipts and revenue. This growth has enabled us to be innovative, creative and to seek out new solutions.

Having withstood periods of economic uncertainty City Property is strongly resourced and positioned to embark on a period of continued growth.

We will continue to invest in our most important asset, our People, through Performance Coaching & Review, Continued Professional Development and Training. It is heartening to enjoy stewardship of a wonderful team of senior managers and staff.

I sincerely hope you, our staff and valued stakeholders, continue to provide support and assistance to allow City Property to continue to go from strength to strength in the years ahead.

Pauline BarclayManaging Director

Annual Performance Report 2016/17 3

Foreword What we doCity Property (Glasgow) LLP provide the management, development and disposal of Glasgow City Council’s non-operational surplus land and property assets as well as providing management services for the Council’s longer term commercial ground leases.

The diverse property services provided to the Council Arm’s Length External Organisations (ALEOs) include: Valuation, Asbestos and Demolition services.

City Property Glasgow (Investments) LLP owns one of the most significant commercial portfolios in the City, extending to around 1,800 commercial properties across a range of sectors including: industrial estates, retail units, office space and ground leases. All of the commercial properties are managed by the Investments team. External agents are used to support letting and other management functions.

City Property Markets is a trading division of City Property (Glasgow) LLP and operates the largest wholesale fresh fruit, vegetable, flower and fish markets in Scotland as well as a number of retail and farmers markets across the city.

BoardThe board consists of the Managing Director of City Property (Glasgow) LLP, a senior officer of Glasgow City Council and five elected members. The Board is chaired by an elected member.

• Councillor Angus Millar; Board Chair• Pauline Barclay; Managing Director of City Property

(Glasgow) LLP• Ian Robertson; Assistant Director, Glasgow City Council• Councillor Richard Bell• Councillor Tony Curtis• Bailie Norman Macleod• Bailie Jacqueline McLaren


Marketing Services

Marketing Services Years Ahead• Capital Receipt target of £10.5 million for 2017/18.• George Street complex due to settle in 2017/18

with an expected capital receipt in excess of £5 million.

• Middlefield School under offer for minimum price of £8.15 million and expected to settle in 2018/19.

• Ingram Street car park under offer for minimum price of £6.15 million and expected to settle in 2019/20.

• Stepford Road residential development due to complete with an expected capital receipt in excess of £1 million.

• Former Strathclyde Region Headquarters at India Street coming to market as a city centre development opportunity.

• Continued working with Glasgow City Council to deliver regeneration within Transformational Regeneration Areas.

Capital Receipts for GCC

£12.5M

£5.7M41

Park Quadrant sold for+ additional 4 for City Property Investments

totalling £1.2M

transactions completed

26properties advertised

17 put under offer (for value

of £17.8M)

Park Quadrant


£3mDisposal transactions completed within the team exceeded

Valuation Services

which contributed to the overall Capital Receipt total of £12.5 million.

Off Market Disposals

• In the previous 3 years 14/15 – 16/17 over 35 sites have been sold to RSLs bringing in a receipt to the council of approx. £7.8m and facilitating the development of over 1,500 homes for affordable housing.

• 11.9 acre site at Linkwood Drive sold to GHA for the development of 134 residential units, purchase price £590,000.

• Instructed to dispose of former Drumoyne Primary School to Linthouse Housing Association with a further 12 instructions anticipated in 2016/17.

• Phase 1 office development of circa 150,000 sq.ft. which will become Morgan Stanleys new Glasgow office.

• Phase 2 expected to comprise grade A office development of some 210,000 sq.ft.

Property Asset Valuations

• Inspected in excess of 900 properties for the purposes of asset valuations.

• Completed some 600 RICS Red Book reports and valuations.

• On target to complete the revaluation of City Property Investments portfolio by end of summer 2017.

Total of

23of which

13off-market transactions completed

were to Registered Social Landlords (RSL’s)

Bothwell Exchange


Technical Services

surplus properties managed for Glasgow City Council.

322 1,535work orders instructed for both surplus & investment properties at a total cost of £1.06m

15 demolition contracts complete.

Polmadie Bridge - before

Polmadie Bridge - after

Gorbals Street Shops - before

Gorbals Street shops - after

2,558buildings inspected for the purposes of surveys, dilapidations, maintenance, insurance valuations and drawings.

Year Ahead• Support the implementation of the capital

investment plan for City Property Investments.• Continue to develop condition surveys for all

investment properties. • Establish a cyclical maintenance regime for the

portfolio.


Asbestos Services

• Continue to progress the 4 year management survey programme for all Council family properties.

• Maintain UKAS accreditation.

• Explore opportunities to provide enhanced asbestos management services to the Council family.

131Refurbishment Surveys complete.283Management

Surveys complete.

Year Ahead

Clyde Tunnel Mitchell Library

12 demolition

surveys complete.

Provided expert advice and assistance, if required, to all clients in relation to asbestos issues.

Supported Education Services with the bi-annual inspection of primary schools.

2016/17 surveys included the Mitchell Library, Clyde Tunnel and the Burrell Museum.

Full UKAS reaccreditation achieved.


Commercial Services

Rent roll

£14.9m2nd largest office deal in Glasgow concluded with Ofgem relocating from

London to Commonwealth House.

21,150 sq.ft

Graham + Sibbald

• 5 year capital investment plan approved for investment portfolio.

• Rental income increased by over 4% in the year.

• Significant increase in occupancy at Commonwealth House, creating over 500 new jobs.

• Outdoor advertising portfolio tender launched.

• Agency and professional services contract renewed for further 2 years.

144leases renewed

102new leases

299reviews and

renewals instructed 156properties

Instructed to market & let

Guitar Guitar

Commonwealth House and Tontine Building


Year ahead• Continue and accelerate our capital and

maintenance investment plans.

• Increase the number of new lettings through close working with our agents.

• Introduce on-going efficiencies through various Lean projects across the Investment team and portfolio.

• Maintain proactive tenant engagement, including providing information on energy and carbon reduction schemes.

• Continue to support and advise other Council services and ALEOs on a range of commercial property related matters.

• Launch investment programme of works and activities at the Shandwick Centre including rebranding to The Lochs.

TV and Film lettingsCity Property Investments works closely with the Glasgow Film Office to provide temporary lettings for the filming of productions including feature films, television and commercials.

In the past year these have included;

• 20/30 Albion Street for BBC Drama, The Replacement.

• 29 High Street Basement & Staircase for Film, Churchill.

• 45 High Street for Green Room & DVD Extra Interviews for Film, Churchill.

• 14 Albion Street for Channel 4 TV Series, Supershoppers.

• 70 Mitchell Street (The Lighthouse) for BBC Drama, Trust Me.

Transformation of High St Basement into Churchill’s Bunker


To ensure high levels of stakeholder satisfaction and continually improve upon our performance we surveyed all new 2016/17 tenants.

CPG@46 Our tenant liaison office, CPG@46, continues to improve face to face contact with tenants and forms a focal point for engagement with customers.

A new initiative in partnership with Business Gateway has been launched to help assist their tenants with finding property.

A TV commercial promoting the services on offer at CPG@46 aired throughout summer 2016 on STV and can be viewed on our website.

Tenant Information

Tenant Survey Most satisfied with:• Helpfulness of staff.

• General location of property.

• External condition of building.

Least satisfied with:• Maintenance of common

areas.

• Building directory / signage.

• Common landscaped areas.86% would recommend City Property as a landlord

When making contact,

91% of tenants felt it was easy getting in touch with the right person.

Tollbooth Steeple

93%satisfaction with service

Total


• Glasgow School of Art

• University of Strathclyde

• University of Glasgow

• Tron Theatre

• GCC Social Work

• Royal British Legion (Scotland)

• Hilton Hotel Group

• Ofgem

• Bank of Scotland plc

• JC Decaux UK Ltd

• Farmfoods

• Guitar Guitar

• WASPs

• John Vallance

• 2018 European Championships

Cross section of our tenants showing the diversity of City Property’s client base:

Tenant Analysis Blue chip national corporations and retailers 19%

Scottish and Glasgow industrial and retail businesses 36%

GCC and ALEOs 14%

Further/Higher Education institutions 7%

Religious, cultural and sporting groups 9%

Community groups and charities 15%

19%

36%14%

7%

9%

15%

The Briggait


Recycled

City Property Markets

Fruit box deliveriesOver 300 boxes of fruit delivered every week to Council & ALEO work places to help support the Healthy Working Lives scheme.

Wholesale Market Waste Performance (tonnes)Zero waste to landfill

tonnes of waste now recycled for fuel6311,956 tonnes

of waste recycled

0780

Tonn

es2015/16 2016/17

771822

42Wood

Organic Cardboard

Light plastics

TOTAL

321


Year Ahead• Licence application submitted for

new speciality market in Botanic Gardens.

• Water harvesting plans being developed at Wholesale market.

• Further improvements to communal lighting to reduce energy consumption.

• Bespoke onsite waste recycling facility under development.

• Further work with health and safety to ensure working and visitor conditions remain safe.

• Continued partnership working with Carbon Management and best value recycling companies.

MuralFish market mural commissioned and completed.

Award• The Sustainable Green Markets

project won the Herald Society Award for Environmental Initiative of the Year. This was in recognition of continuing efforts and initiatives implemented that make the markets more environmentally friendly.

• The project has also been shortlisted for the MRW National Recycling Awards. Farmers Market


Member Liaison Unit

Through a number of events organised by the Business Support team, City Property staff raised over £3,000 for a variety of charities including:

City Property has a formal protocol concerning consultation and engagement with Elected Members of Glasgow City Council and other elected officials.

Type of Enquiry

No. of Enquiries

Responses issued within 10 days

Councillor 424 93.9%

MSP 40 90%

Fundraising

Corporate Services


MCR PathwaysCity Property is a proud supporter of one of the biggest Public Social Partnership agreements signed between Glasgow City Council and MCR Pathways to help raise the attainment and aspirations of thousands of Glasgow’s young people.

Liam Murray started with City Property in June 2016 having been mentored through the MCR Pathway. He is currently working towards his RICS APC in Building Surveying and has also became an MCR Mentor having seen first-hand the benefits it can offer.

It is thanks to the invaluable support of mentors that over 600 young Glaswegians are getting the support that is making a transformational difference to their education, career and life chances.

81% of MCR’s mentored young people reached college, university or employment after leaving school last year. This is in sharp contrast to the 48% historic Glasgow average.

City Property (Glasgow) LLP Exchange House, 229 George Street Glasgow G1 1QU

0141 287 6166 [email protected] www.citypropertyglasgow.co.uk

T @CityPropertyLLP

annual performance report 2016/17 - city property glasgow · • phase 2 expected to comprise grade...

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