PSP Lichfield LLP Strategic Asset Management Committee Using the - - PowerPoint PPT Presentation

publicsectorplc.com

Using the power of Partnerships to achieve exceptional outcomes

PSP Lichfield LLP Strategic Asset Management Committee Briefing Session

28th November 2019​

publicsectorplc.com

Purpose of today …

Public Sector Plc provides expertise and funding to unlock value within public sector property assets To provide Lichfield District Council’s Strategic Asset Management Committee Members with an introduction to the PSP Lichfield LLP Partnership, including:

• Introduction to Public Sector Plc
• Benefits of a PSP Partnership
• Governance Overview
• Summary of Partnership Projects

publicsectorplc.com

19 Partnerships

publicsectorplc.com

Introduction to Public Sector Plc

Public Sector Plc provides expertise and funding to unlock value within public sector property assets

• Originated in the public sector and works exclusively with property and land
• Establish Limited Liability Partnerships (LLP) with councils
• 19 partnerships with councils across England
• Unique Relational Partnering in-source model
• Emphasis on delivering socio-economic benefits for council partners
• Share knowledge via the LG Council Consortium Group and Advisory Group
• Robust governance structure and framework
• Additional ‘fourth option’ - does not take away ability to use other methods

publicsectorplc.com

Responding to your challenges

• Delivering development, regeneration and socio-economic benefits
• Supporting Strategic Plans and financial strategies
• Facilitating a broad range of property projects with the public sector

including:

• 1. Land promotion and regeneration
• 2. Portfolio management
• 3. Housing delivery
• 4. Adult care and health opportunities

publicsectorplc.com

Benefits of a PSP Partnership

• Draws in additional resource whilst facilitating insourcing
• Statutorily compliant process
• Delivery risks assessed on a project by project basis
• Governance process in place for all project approvals
• LLP option tested against Council’s other options to ensure best value for money
• Projects are validated to demonstrate achievement of necessary tests
• LLP sits outside the council
• Enhances ability for council to deliver/achieve its outcomes quicker

publicsectorplc.com

How PSP is Evolving

Strategic Partnership

• Strategic connection with

partners to allow opportunity to add highest value

• Aligned with council’s strategic
• bjectives
• Ensure partnership is highly

relevant to the council

Successful Partnership

• Focussed objectives and

pipeline of different types of projects

• Resources working better

together and committed to the partnership Delivering

• utcomes beyond

expectations

Governance

• Respond to innovation and

change / continuously refine governance framework

• Exploring more diverse ways
• f funding

publicsectorplc.com

Example of office rationalisation / land promotion

Town centre office rationalisation

• Twelve expensive and unfit buildings vacated with staff relocated

to efficiently occupied refurbished space

• Programme funded out of capital receipts from value added

disposals by the partnership

• Objective – To realise £450K revenue savings p.a. whilst providing

better quality and more sustainable accommodation resulting in improved working environment and better staff retention

• Historic backlog and planned maintenance liabilities of existing

estate removed

publicsectorplc.com

Example of development management

Supported temporary accommodation

• Council statutory responsibility - alternative solution required to

private bed and breakfast facilities

• LLP facilitated solution - the development of a new building for

households at risk

• Enable council revenue savings of £80K p.a.
• LLP managing planning, design and delivery of 18 home units
• Improvements to quality of life and likelihood of households

returning to autonomy and independence

• Utilisation of low quality temporary land use site

publicsectorplc.com

PSP Housing Model

• Complements council’s existing housing delivery programme
• Family houses for Private Rented Sector (PRS)
• Dedicated brand established (www.letlife.co.uk)
• Modern Methods of Construction (MMC)
• Highly energy efficient homes
• Current potential pipeline of 900+ units across six partnerships
• Council owned land suitable for housing could be used to:

– Secure more robust delivery of housing in short time frames – Generate revenue stream to the Council – Provide wider socio-economic benefits

publicsectorplc.com

Examples of housing model

100 unit scheme comprising 2, 3 and 4 bedroom houses with associated carparking and public open space 24 unit apartment scheme with under croft parking 39 unit scheme comprising 2, 3 and 4 bedroom houses with associated carparking

publicsectorplc.com

Examples of portfolio management

Ground rent portfolio

• Mixed portfolio of 2,500 ground rents
• Construction of high quality speculative office
• Purchase of Travelodge
• Portfolio reduced to three assets
• Net income significantly increased

Investment portfolio

• Circa 1,000 commercial assets​
• Deal finalised to take over portfolio for 7 years​
• Portfolio to be rebalanced​ with poor performing assets to be sold​
• New assets to be acquired or developed

publicsectorplc.com

Socio-economic benefits

publicsectorplc.com

Questions?

publicsectorplc.com