Imperial’s ‘College Fund’ has a ‘Special Circumstances Portfolio’ for assets that have been classified as ‘Non-Core’ (i.e. that could in extremis be sold for cash without detriment to the College’s academic mission), but where they either lack liquidity or represent too high a level of risk in their transferred form. These assets include Wye.
At the last Council meeting on 21 November 2008, Baroness Wilcox asked about the assets at Wye that were held by, or were being transferred to, Imperial’s College Fund. In reply Dr. Knight said that, “for reasons that were well known, the College was maintaining a relatively low profile at Wye. Academic activity at the main Wye Campus would cease at the end of the current academic year and, as had been previously advised to the Council, alternative clients for the Campus were being sought, so far without success.”
He went on to explain that there were a number of other properties at Wye, including the Farm, some residential properties in the village and the Withersdane Conference Centre, most of which were already being managed through the Fund. The Farm was, he said, being rented out to an external client and the College was acting as a responsible landlord for this and the other properties. Withersdane was now empty and would fall into disuse if an alternative client was not found. It was therefore proposed to transfer Withersdane to the College Fund, which could then find another use for this property.
The College Fund has taken significant strides in delivering its objective in terms of optimising the value of the Non-Core Property portfolio through an active approach to planning and development. One of the main contributors to a significant increase in the overall rental income from Fund properties was …
“The completion of a Farm Business Tenancy with F D Attwood for the College Farm at Wye in Kent, ensuring that the land is farmed and managed for the next ten years and delivers a consistent income of £100k per annum. The agreement on the FBT also ensures that the Farmland can be treated as a true investment asset, valued at over £3m on the basis of £4,000 per acre, rather than a net liability for the College. It is notable that the most recent market activity in the area of Rural Land has seen prices achieving £8,000 per acre and above – however, it has been deemed prudent to hold this asset at £3.1m for the time-being.”
The College Fund also achieved a number of planning consents on its portfolio over the year, among the most significant …
“On the Wye campus a number of planning applications have been commenced, and during the year planning changes were confirmed for the Equine Centre, to general usage and not restrict it to students, and to the Old Vicarage for open residential usage. However, an application in relation to Edward Partridge House was denied and is now the subject of appeal proceedings.”
And reporting on the Withersdane Site …
“All College-related activity ceased on the Withersdane site on 15 October 2008. Internal agreement has been reached with the Management Board that this site therefore now conforms to the definition of a Non-Core Asset – i.e. that it could be sold for cash without detriment to the academic mission. It is therefore requested that the Council formally approve the transfer of this asset over to the College Fund at a value of £5.75m. As per the agreed procedures for the transfer on Non-Core Assets, this is based on a current formal Red Book Valuation undertaken by Savills, the College Property Advisors. A summary of the site is set out in Annex B.
Obviously Annex B was considered commercially sensitive and not included!
http://www8.imperial.ac.uk/content/dav/ad/workspaces/secretariat/Council21-11-09papers.pdf
