The Uttlesford Investment Board met to discuss the Uttlesford Property Portfolio Q1 Report and a request for funding from Aspire (CRP) Limited. The board noted the Q1 report, and provided feedback on the funding request for the Chair of the meeting, Councillor Neil Reeve, Portfolio Holder for Environment and Climate Change, to present to the cabinet on 21 August 2025. The feedback indicated general support for the recommendations, but also highlighted concerns about the level of funding requested and the potential risks involved.

Aspire (CRP) Limited Funding Request

The Investment Board considered a request for £7.6 million in funding for Aspire (CRP) Limited, the council's wholly owned subsidiary, to support development at Chesterford Research Park. The funding is earmarked for two key projects: £5.1 million for the refurbishment of Building 900, previously occupied by AstraZeneca, and £2.5 million to complete Building 800.

Building 900 Refurbishment

Building 900, formerly occupied by AstraZeneca, requires refurbishment after 21 years without upgrades. The proposal involves splitting the 20,000 sq ft building into two 10,000 sq ft units to attract tenants. The aim is to achieve a rental income of approximately £57.50 per sq ft.

Concerns were raised about the ability to let Building 900, but members recognised that leaving the building empty was not a viable option, as it would result in a monthly loss of £60,000 in rent for Aspire.

Building 800 Completion

Additional funding is required to complete Building 800 due to the original contractor, Readie Construction Ltd, entering administration, which led to the appointment of a new contractor and increased costs. The additional funding would ensure the building is completed. It is believed that smaller 5,000 sq ft units would be more appealing to the market, and there has been interest from potential tenants. The additional loan could be covered by increased rents, from £57.50 per sq ft when the original proposal was agreed in 2023, to the current position of in excess of £70 per sq ft, assuming a fully let building.

Sale of Chesterford Research Park

The board received an update on the proposed sale of Chesterford Research Park. After two rounds of bidding, no offer had reached the minimum sale price. A bid from Aviva was expected, but the announcement of tariffs by the USA and conflicts such as in Ukraine had disrupted the financial market, preventing Aviva from submitting a bid. However, it is anticipated that Aviva may make a suitable offer in the future.

It was mentioned that the park might consider developing further buildings, such as 1100/1200, as outline planning permission is already in place. However, concerns were raised about providing further funding for speculative buildings until Buildings 800 and 900 are significantly let.

Independent Member's View

Paul Abrey, Independent Member, stated that funding for Building 800 was necessary to rectify a problematic situation, and refurbishing Building 900 was essential. However, he advised against providing further loans to Aspire (CRP) Ltd for the time being.

Cabinet Presentation

Councillor Neil Reeve, Portfolio Holder for Environment and Climate Change, would present the Investment Board's feedback to the cabinet on 21 August 2025.

Uttlesford Property Portfolio Q1 Report

The Investment Board received the Uttlesford Property Portfolio Q1 Report, which provided an overview of the council's property investments between 1 April 2025 and 30 June 2025.

The report highlighted that the total asset valuation at the end of Q1 was £1.6 million higher than at the end of Q4. However, this increase was masked by an additional £18 million invested at Chesterford Research Park during Q1, indicating a downturn in the underlying value of the portfolio. The total portfolio valuation as of 30 June 2025, was £278,625,000.

Key points from the report included:

• Chesterford Research Park: Building 900, formerly occupied by AstraZeneca, was currently vacant and awaiting refurbishment.
• Skyway House, Takeley: Weston Homes had vacated the ground floor and agreed a five-year sub-letting to Storm Aviation Ltd.
• Stane Retail Park: Phase 2 of the site is now owned by WAG Properties Investments.
• Regional Distribution Centre, Chorley: Amazon had moved into their Distribution Centre.
• Recent borrowing rates had been around 4.2%, and rates were predicted to fall further.

Councillor Neil Hargreaves, Deputy Leader and Portfolio Holder for Finance and the Economy, asked about the impact of pressure in the gilt market¹ on inter-authority loans. The Strategic Director of Finance, Commercialisation and Corporate Services, Adrian Webb, responded that there had been no material effect. He also noted that all commercial markets were currently under pressure.