Manchester housing fund, DCLG appoints Hymans, JP Morgan liquidity survey, Sunderland £100m property deal

Housing fund appoints delivery team
Manchester’s nascent housing investment fund, aimed at delivering 241 homes on five sites owned by the city council has announced its delivery partners. Construction firm Wates Living Space has been chosen as the development contractor to build the homes, with Help to Buy adviser Plumlife appointed to lead sales and marketing. Housing association Places for People will act as letting agent and manger of the rental element, property adviser GVA becomes technical supervisor, with Pozzoni appointed as architects. The partnership is aimed at producing a revenue return from their investment through rents and a capital return through house sales, with a planning application due to be decided in early 2014.

Hymans Robertson appointed to LGPS review
The Department for Communities and Local Government has appointed pensions consultancy Hymans Robertson to advise on three potential structures for the Local Government Pension Scheme. Following a consultation into the issue, the department and the Cabinet Office said that the research project would examine a single national investment fund, a small number of aligned investment vehicles and a merger between the 89 existing funds. A spokesperson for DCLG said that the results would help form a new consultation on the principles for reform.

Pickles repeats call for reserve spending
Communities secretary Eric Pickles has reiterated his call for local authorities to spend their cash reserves after figures released by his department showed cash reserves standing at £19 billion in 2012/13 – up £2.6 billion on the previous year. £0.9 billion of the total rise was accounted for by the Greater London Authority. Pickles said councils should look at “using reserves to pay for the short-term costs of restructuring their management structures to save millions in the long-run”.

J.P. Morgan treasury survey released
Financial services firm J.P. Morgan has released its Global Liquidity Investment Peerview2013, surveying the attitudes of treasurers in firms across the world. The survey found that liquidity is a key concern, with half of cash assets placed in bank deposits. A third is devoted to money market funds. Risk remains a focus, with the majority of investment policy statements limiting the use of shorter duration debt securities and requiring minimum credit ratings for longer and shorter term securities. Respondents also voiced concerns over regulatory change.

Councils fear financial “tipping point”
More than three quarters of councils expect to face a “tipping point” in their ability to balance the books between 2015 and 2017, according to a new survey. Accounting and advisory firm Grant Thornton said that 79 per cent of councils expected a high risk of financial failure due to cuts from central government during the period. The report rated councils in four areas – financial performance, strategic financial planning, financial governance and financial control. It found that unitary authorities most feared a “tipping point” in the short term.

Sunderland property vehicle partner selected
Sunderland City Council has selected a private sector consortium for its new local asset backed vehicle aimed at regenerating key sites in the city. The consortium will be led by construction firms Carillion and Igloo Regeneration and will provide funding equal to the value of the council’s land holdings identified for the vehicle – estimated at up to £1 billion. The partnership is anticipated to last for up to 20 years, with a possible extension of up to 10 more years.

South Cambs agrees plans for housing company
South Cambridgeshire District Council has agreed a £7 million investment to set up a property company aimed at generating annual income to support services. A specialist arms-length housing company – South Cambs Limited – was registered last year to allow housing bosses to buy, build and sell properties at market prices, with profits returned to council coffers. The initial investment will fund a pilot scheme and property portfolio of up to 40 homes over the next two years.