Financial Statements 2016 | Page 34

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