Croydon appoints agent for property services
Croydon Council has appointed Gen2 Property to manage its real estate portfolio as the council struggles with a £66m hole in its budget and dwindling commercial income.
The property services consultancy will advise on acquisitions and disposals, as well as strategic asset management for both commercial and residential.
Gen2 Property was selected following a procurement launched last April. The appointment comes after the council declared itself effectively bankrupt in November, with a £65m budget gap and high levels of borrowing, and called for government support.
Croydon Council has appointed Gen2 Property to manage its real estate portfolio as the council struggles with a £66m hole in its budget and dwindling commercial income.
The property services consultancy will advise on acquisitions and disposals, as well as strategic asset management for both commercial and residential.
Gen2 Property was selected following a procurement launched last April. The appointment comes after the council declared itself effectively bankrupt in November, with a £65m budget gap and high levels of borrowing, and called for government support.
Auditors at Grant Thornton raised concerns over investments that “exposed the council and future generations to significant financial risk” and slammed the “collective corporate blindness”.
A report in the public interest revealed £545m borrowed over three years, with £200m invested into its arms-length development company Brick by Brick, with no dividends or interest paid and a rushed £100m asset acquisition fund with commercial income impacted by Covid-19.
In December, the council issued a second notice with a projected £66m overspend, with a £30m hole attributed to undeliverable income from Brick by Brick. Croydon expects to update its financial strategy by February 2021 for the next year’s council budget.
Gen2 Property will support the council with residential acquisitions for social housing, freehold and leasehold acquisitions and disposals, rent reviews, lease renewals and lettings. It will also provide general valuation, commercial estate management, development consultancy and strategic property advice.
The consultancy has been awarded a 36-month contract with the option to extend for a further 12 months, with a maximum contract value of £500,000.
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