accordgroup.org.uk /value-for-money
Understanding the Group’s asset base – disposal and reinvestment
During 2015/16, £6.7m of income was generated from the disposal of new and existing housing stock. These funds have been reinvested in the provision of new housing supply and further improvements to existing homes. In the next five years, the Group’s approach
to strategic asset management sees the disposal of housing stock identify a further £29.4 million return on assets from strategic stock
disposal over the life of the five year business plan. The Group Business Plan identifies how income from the strategic disposal of property
will support the development of new homes over the next five years, as outlined opposite:
2016 2017 2018 2019 2020 2021
Actual Budget Forecast Forecast Forecast Forecast
Return on assets generated through
3,123
strategic asset management (£’000)
6,163
8,016
7,052
12,083
1,950
Investment in new homes developed
21,434
37,654
50,616
22,286
20,267
20,952
Investment in existing housing stock
15,649
14,213
14,456
15,012
15,212
14,545
Total investment in housing
37,083
51,867
65,072
37,298
35,479
35,497
Net loan debt required to finance
3,726 18,472
22,612
4,378
-
investment programme
Net surplus cash available for capital
-
-
-
debt repayment
Return on Assets generated
33,357
33,395
42,460
-
9,146
7,986
32,920
44,625
43,483
In addition to the strategic disposal of existing homes, the Group is currently part way through a programme of rationalising its
corporate property portfolio. So far this has involved disposal of some property on the open market, the termination of lease
agreements, consolidation of office space and the reassignment of assets. Work is ongoing and supports the delivery of objectives in
the five year business plan.
32
Accord Group