PSP Lichfield LLP Strategic Asset Management Committee Using the power of Partnerships to achieve exceptional outcomes Briefing Session 28 th November 2019 publicsectorplc.com
Purpose of today … 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 Public Sector Plc provides expertise and funding to • Governance Overview unlock value within public sector property assets • Summary of Partnership Projects publicsectorplc.com
19 Partnerships publicsectorplc.com
Introduction to Public Sector Plc • 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 Public Sector Plc provides • Emphasis on delivering socio-economic benefits for council partners expertise and funding to • unlock value within public Share knowledge via the LG Council Consortium Group and Advisory Group sector property assets • 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 Successful Partnership Governance • • • Strategic connection with Focussed objectives and Respond to innovation and partners to allow opportunity pipeline of different types of change / continuously refine to add highest value projects governance framework • • Resources working better Exploring more diverse ways • Aligned with council’s strategic together and committed to of funding objectives the partnership Delivering outcomes beyond • Ensure partnership is highly expectations relevant to the council 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 39 unit scheme comprising 2, 3 and 4 bedroom houses with associated carparking 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 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
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