Rushcliffe Borough Council’s commercial property estate is generating about £1.9 million a year in rental income, with no properties currently classed as high risk, a new review says.
The council’s Governance Scrutiny Group is due to consider the Investment Property Review on Thursday 18 June 2026. The report, prepared by the Director of Finance and Corporate Services, updates councillors on the performance, risks and future maintenance requirements of the authority’s commercial property portfolio.
The portfolio includes industrial estates, multi-let buildings and single-let properties, with assets ranging in age from Bridgford Hall to the Bingham Enterprise Centre, which was completed in 2023. Some properties were acquired over many years through regeneration projects, including Cotgrave Shopping Centre, Manvers Business Park and Colliers Business Park, while more recent additions include investment purchases at Edwalton Business Park and Bardon Industrial Estate in Coalville.
The council’s Asset Investment Strategy was adopted eight years ago, with the most recent review completed in February 2024. The latest report says the review is important because the property market has continued to change following the Covid-19 pandemic, the war in Ukraine and wider economic pressures, including inflation, higher utility costs and wage increases.
It also says an up-to-date evidence base is needed because of Local Government Reorganisation, so that the performance, risks and future liabilities of the portfolio are clear during any transition.
The report says the commercial estate generates around £1.9 million a year in rent, with about 37 per cent of that income coming from more recently acquired investment assets, which remain fully let.
Overall occupancy in the council’s portfolio stands at 96.42 per cent. Industrial occupancy is 98.9 per cent, while non-industrial assets are at 94.37 per cent. The report says this is above the reported private sector occupancy rate in the borough, where industrial property occupancy is 92.6 per cent and overall commercial occupancy is 92.7 per cent.
The council says newer assets, including Phase 2 at Colliers Business Park, Bingham Enterprise Centre, Cotgrave Business Hub and Phase 2 of Cotgrave Shopping Centre, remain popular with tenants and have seen high occupancy and rental growth in line with market conditions.
However, the report also notes that four council tenants have recently entered administration. All four vacant units are being marketed, and negotiations are progressing with three proposed new tenants.
One disposal has been completed since the 2024 review. The council’s freehold land interest at Candleby Lane Industrial Estate was sold in 2024 to the long leasehold sub-tenant. The report says the site had previously been identified as a medium risk and that the sale achieved an above-market capital receipt.
No new commercial properties have been constructed since the previous review, but refurbishment work has been carried out across parts of the operational and commercial estate. Manvers Business Park, which was previously assessed as medium risk because of roof, soffit and roller shutter condition issues, is undergoing refurbishment works which are expected to be completed in July 2026.
The 2026 review focuses only on commercial property leased to businesses. It does not include car parks, land, community buildings or the council’s operational estate, such as the Arena, which are reviewed separately.
Each commercial asset has been assessed using factors including asset value, current and projected rent, financial return, likely maintenance and upgrade costs over the next ten years, age, tenant risk, statutory risk and potential economic obsolescence.
Only one property, Unit 3 Walkers Yard in Radcliffe-on-Trent, has an average risk score above five on the council’s scale of one to ten. It has been given a score of 6.75 because it is dated office accommodation and could face a prolonged void period if the current tenant leaves. The building’s EPC rating is D99, meaning it is unlikely to meet a possible future minimum requirement of EPC Grade C. However, the report says the property has strategic value because it sits on the boundary of Walkers Yard Car Park and forms part of wider council landholding and masterplanning work, so it should be retained.
The report identifies The Point and Manvers Business Park as the two main assets expected to require significant capital maintenance over the next decade. Estimated costs are £400,000 for The Point and £120,000 for Manvers Business Park, the latter mainly linked to possible future EPC compliance measures.
The Point has a risk score of 4.25. The report says the building has a strong EPC Grade B rating and could achieve Grade A with further upgrades to common-area lighting. However, it has not had major refurbishment since it was built in 2007, and air conditioning, lifts, roof membrane and common areas are expected to require work within the next five to ten years.
The Point was bought from administrators in 2013 for £1.975 million and has since generated £3.775 million in rental income. Its current return is 9.58 per cent, although this is expected to fall to around 7.45 per cent once forecast capital costs are spread over the next ten years. Occupancy at the building is currently 77 per cent, with suites vacant following the administration of Protocol Ltd and another suite due to become vacant in September. The report says there is interest in all three suites and anticipates the property could be fully re-let by the end of the year.
Manvers Business Park in Cotgrave has a risk score of 3. It provides small industrial and warehouse units, mainly around 750 sq ft, with the largest unit about 3,750 sq ft. The report says the estate supports start-ups and small and medium-sized businesses through flexible lease terms. Recent works include replacement roller shutter doors, new soffits and gutters, and roof refurbishment.
Other assets with risk scores above three include Phase 1 at Colliers Business Park and Bridgford Hall.
Phase 1 at Colliers Business Park has a risk score of 3.25. The report says the units, which are about 25 years old, already achieve EPC Grade C, although maintenance costs are expected to rise over the next ten years. It says demand for industrial and warehouse accommodation remains strong and that the 5,000 sq ft units provide space for existing council tenants to expand.
Bridgford Hall also has a risk score of 3.25. The listed building is rated EPC C62, which is expected to meet anticipated 2027/28 requirements. The ground floor is used by Nottinghamshire County Council’s Registrars Service and wedding venue, while the first and second floors comprise an aparthotel. The aparthotel was vacated in 2025 after the tenant entered administration, and the council is in negotiations with a prospective new operator.
The report says Bridgford Hall currently generates a return of 4.32 per cent while the aparthotel remains vacant, but this is forecast to rise to 8.76 per cent once it is re-let. The report recommends that the building should be retained because of its strategic significance and income potential.
The review also considers future energy efficiency rules. Minimum Energy Efficiency Standards restrict the letting of commercial property below certain EPC ratings unless an exemption applies. The report says requirements are expected to tighten in 2027/28 to EPC Grade C and again in 2030, although the precise requirements have not yet been confirmed by central government.
The council has carried out draft EPC recalculations across the portfolio following revised calculation factors for electricity use. The report says electrically heated properties are generally expected to receive improved ratings, while gas-heated properties may see lower ratings. It says most ratings in the portfolio are expected to improve when new EPCs are required, reducing compliance risk and the need for future capital expenditure.
Funding for projected enhancement costs is included within the council’s current capital programme and will come from capital resources, with the investment property reserve used in the first instance. General repairs are included in the revenue budget and will continue to be monitored.
The report says no immediate action is required because no properties are currently assessed as high risk. It recommends that the Governance Scrutiny Group scrutinises the review of the council’s commercial property portfolio. Any future proposed disposals would be reported to the Asset Investment Group and, if progressed, to Cabinet, and would be reflected in the council’s Medium Term Financial Strategy.
