Understanding the Group’s asset base – how Accord maximises its returns
The application of the Board-approved Corporate Asset Management Strategy has seen the continuing usage of an appraisal model
which uses existing property and customer data to inform decisions about the most effective use of stock – for example invest or divest.
The following criteria inform the decision making process:
n Market value: a property with a high market sales value upon becoming void may generate funds to help the Group to develop
several new homes.
n Location: geographically outlying stock is inherently more costly and therefore less efficient to manage.
n Rent levels: properties with a higher rental value will generate greater future income streams for the Group.
n Stock condition – if investment in major planned works and component replacements in the property has taken place in the last
five years then it may support the decision to retain that property.
n Stock investment – future requirements: where a property is in need of major investment in the next five years, a decision may be
made to divest upon the property becoming void.
n Tenancy turnover: a property with a history of high tenancy turnover may support a decision to dispose as there has been
increased exposure to historic costs. Trends may suggest this exposure to increased costs could continue in the future.
Location
Market value
Rent yield/current
and future rent levels
Decision making process
Investment/return
Recent major
works/condition
Future major
works required
Tenancy turnover
(Exec. and Board)
Divestment/sale/reclassification
These principles have been practically applied to support the disposal of almost 300 properties over the last five years into the local
property market generating over £20million in sales proceeds. These proceeds have supported the delivery of 145 new affordable homes
alongside a programme of almost 1,100 recently completed or pipeline new homes through the Affordable Housing Programmes.
Financial Statements 2016
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