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Ministers Plan £20bn Property Sale

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Ministers plan £20bn property sale

Ministers are to examine the sale of tens of billions of pounds of real estate assets in a fresh attempt to generate cash to repair Britain’s battered public finances.

By Mark Kleinman

Published: 10:42PM BST 06 Jun 2009

The Government has begun a process to recruit experienced property executives to manage about £35bn-worth of assets. The new team will help establish a new wing of the Shareholder Executive, which is likely to be called the Property Executive.

The move to establish the new division is understood to have been approved by Yvette Cooper in one of her final acts as Chief Secretary to the Treasury. In last Friday’s Cabinet reshuffle, Ms Cooper was appointed secretary of state at the Department for Work and Pensions. She was replaced as number two at the Treasury by Liam Byrne, a former investment banker at Rothschild.

The Treasury’s endorsement of plans to create the Property Executive follows a report on public sector real estate assets produced ahead of April’s Budget by Lord Carter of Coles, the Labour peer who made a fortune from a career in the healthcare industry.

In his report, Lord Carter estimated that the Government could expect to generate approximately £20bn from property disposals during the next 10 years and a further £5bn in annual savings from running costs by the end of that period.

The initiative forms one component of the Government’s Operational Efficiency Programme, which is designed to produce significant cost savings amid mounting concern about inefficiencies in Whitehall.

Analysts said that establishing the new arm under the auspices of the Shareholder Executive, which manages a sprawling portfolio of assets such as Royal Mail, the Met Office and Channel 4, would introduce a more professional management approach to the Government’s vast property empire, which the Office of National Statistics believes is valued at about £370bn.

http://www.telegraph.co.uk/finance/newsbys...perty-sale.html

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Asset stripping the country.

It's great to have such cretins in power.

Selling it what we all know the market is down great, they sold of 40 billion worth of property last time now another 20 billion, we are being robbed. Why not just sell everything, plus you know the UK is in financial trouble when it has to sell off property.

Sir Henry Wells, Chairman of the Land Commission, came under fire, particularly from builders, who complained that land was not forthcoming as promised. According to the property correspondent of the Observer, 1 December 1968, Sir Henry had threatened to resign because of unfair criticism. "…I am tired of being nagged by builders. I am trying to help," he said, and blamed the planning authorities for not releasing more land.

what is it with labour and property?

Edited by crash2006

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Enter Alan Sugar to buy some bargain basement property? :o

No, he'll slip is own ailing property empire into the sale, most likely.

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Has anyone seen the silver tea spoon, it was just under the silver candlestick holder, ohh damn, now that's gone as well. They have been in my family for generations!

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Yep, and then buy it back........

No they will sell it at knock down prices and then rent it back at extortionate prices. The contracts for the rental of these buildings will include lots of little extras that the government will have to pay but these won't be publicized in an effort to hide the costs.

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the final undignified disgrace of a bankrupt government..

They are about to be humiliated by UKIP :lol:

Oh of course its a vote for the minority lot because of the corruption ;)

It's got nothing to do with the lisbon treaty be allowed to pass despite a multitude of countries voting against it.

The arrogance is shocking

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With Brown's timing on selling things and the normal delays of the Civil Service they should start releasing the first property right at the bottom of the market.

Perfect bull market signal I'd say - give it 3-4 years mind you.

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I wonder what dumping £20b worth of commercial property onto the market will do to values.

the reason why values have fallen by 45% is that there are too few pounds chasing too much available property.

also the reason why banks won't dump the £100b of commercial property where loan covenants have been breached - because the resultant fire sale will depress the value of their asset even further.

This might even be cash negative for public finances

i.e.

Government make £15-20Bn from sale of property

Government pay banks £30bn + extra under insurance schemes as banks panic and dump assets onto the market

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Alice on ukhousebubble made a good post back in 2008, which explains the situation in advance

http://ukhousebubble.blogspot.com/2008/07/...t=1215511500000

The external accounts suggests that the UK economy is rather like a semi retired old man, relying largely on assets accumulated in earlier better times. The UK dabbles in the world of trade, but it is the steady investment income that maintains our living standards. However, investment income is always vulnerable to shifting vagaries of asset returns. The UK's easy-going retirement could be in for a nasty shock.

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Asset stripping the country.

It's great to have such cretins in power.

If they can sell enough stuff then people will say they've left a golden economic legacy.

It has worked before after all.

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Enter Alan Sugar to buy some bargain basement property? :o

Yes, I am afraid this opportunity will not be open to "members of the public"! :(

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Enter Alan Sugar to buy some bargain basement property? :o

That's not his style, surely. He buys high, sits watching property prices going through the floor and cons people into thinking that he's a successful businessman!

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Asset stripping the country.

It's great to have such cretins in power.

We have had them in power since 1979, Maggie sold the family silver off long, long ago.

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