Value For Money Statement 2016 VFM Statement 2017 | Page 20

Understanding Accord’s asset base – disposal and reinvestment
During 2016/17, a total of £5.0m of income was generated from the disposal of new and existing units of housing stock. These
funds have been re-invested in the provision of new housing supply and further improvements to existing homes.
Accord’s strategic asset management tool was used in the decision-making process for the sale of existing homes. Following
the application of the strategic asset management tool (including a NPV assessment) these properties were earmarked for
disposal owing to a long-term financial viability below Accord’s required parameters.
In the next five years, Accord’s approach to strategic asset management sees the disposal of housing stock identify a further
£17.3 million return on assets from strategic stock disposal over the life of the five year Business Plan. The 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 below:
Period: 01 April 2017 - 31 March 2047 2017 2018 2019 2020 2021 2022
Actual Budget Forecast Forecast Forecast Forecast
Return on Assets Generated Through
Strategic Asset Disposal Programme
Investment in New Homes Developed
Investment in Existing Housing Stock 4,109 4,264 2,266 2,363 2,142 2,184
39,671
14,520 50,910
13,757 54,162
13,937 31,313
14,052 13,425
14,486 8,063
14,905
Total Investment in Housing 54,191 64,667 68,098 45,365 27,911 22,968
Net Loan Debt Required to Finance
Investment Programme
Net surplus cash available for Capital
Debt Repayment 14,590 31,397 52,447 11,972 - -
- - - - 22,728 15,956
Return on Assets Generated 39,601 33,269 15,652 33,394 50,639 38,924
In addition to the strategic disposal of existing homes, Accord 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. The exercise both reduces overhead expenditure and generates a capital receipt for reinvestment.
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Accord Housing Association