AVDC launches ground breaking joint venture for commercial property portfolio

Aylesbury Vale District Council and the Akeman Partnership have signed an agreement to establish a ground-breaking commercial property joint venture to be known as Aylesbury Vale Estates (AVE).

The innovative move will ensure that AVDC’s portfolio of industrial units, shops and offices meets the needs of modern businesses and continues to provide an income stream which can then be used to support important services.

As part of the joint venture, which has a minimum life of 20 years, AVDC has transferred ownership of all of its commercial property assets to AVE. The properties will now be managed, improved and developed by the joint venture, with an income coming to the council.

AVDC and the Akeman Partnership will control AVE on a 50/50 basis, with the council represented on the board of the joint venture and continuing to be involved in the operation of the portfolio at a strategic level.

AVDC chose the Akeman Partnership following a thorough procurement process that followed the regulations set out by the European Union. The council was advised throughout the procurement process by consultants Drivers Jonas.

Tenants have been informed of the initiative.

The council has around 250 commercial and tenanted premises in the district, including small industrial units, shops and office accommodation. The property is mainly occupied by business tenants ranging from local firms to international companies.

The rent paid by business tenants is an important income stream which has helped cover the cost of council services for some time now. A key factor in the council’s decision to take this project forward was to maintain this valuable source of additional income to support its services.

Councillor Michael Edmonds, Deputy Leader and Cabinet Member for Economic Development, said: “Offering good quality business property acts as a catalyst for growth which is vital for Aylesbury Vale given that we need to create at least 21,500 new jobs between now and 2026. We want to improve the availability and quality of our commercial properties so that businesses can expand in or relocate to Aylesbury Vale. Joining forces with the Akeman Partnership is our best opportunity to do this.”

Councillor Edmonds added: “I would like to thank staff, especially our asset management, legal and financial teams, and my fellow councillors for their help and support. I would also like to pay tribute to our advisors Drivers Jonas, Pinsent Masons and Grant Thornton for their part in this process. This is a big step for AVDC to take but I’m sure it is the right one.”

Graham Cole of Guildhouse UK, speaking on behalf of the Akeman Partnership, said: “We are delighted to have established this innovative joint venture with the council. We look forward to working with the council and the tenants of the commercial property portfolio on this pioneering initiative.”

Pinsent Masons lawyers acted for AVDC in the transaction, while the Akeman Partnership was represented by Taylor Wessing.