Mandatory Requirements Section 2 : Acquisition by purchase, lease or excambion

2.2 The need for additional property must be established as a result of a systematic review of the Holding Bodies’ service/operational needs and property holdings as detailed in its Property and Asset Management Strategy (PAMS) and appropriate approvals under the terms of the Scottish Capital Investment Manual (SCIM).

2.3 When acquiring property Holding Bodies must acquire the minimum necessary to meet clearly defined future needs and compliance with extant space standards as defined in technical guidance and SG policy. If a site of the minimum size cannot be obtained and it is necessary to buy a larger site the Holding Body must identify and dispose of surplus land as soon as possible. Space audits should include room for expansion particularly in areas identified in extant local authority planning guidance for residential development. It is recognised that it may not be possible to acquire property that exactly meets requirements and where properties larger than that required are acquired Holding Bodies should endeavour to reconfigure services to make full use of acquired property or lease non essential accommodation until needed.

2.4 Where the property to be acquired is of a type found generally on the market and is to be acquired by way of a lease a full space audit of the existing service must be undertaken. This will identify the appropriate amount of space required and Holding Bodies should ensure that the minimum amount of space is acquired subject to meeting existing and future needs.

2.5 Any investment decision must be supported by the preparation of an appropriate business case compliant with the requirements of the SCIM. The option appraisal and financial appraisal should consider a wide range of alternative options including different locations, different types of property and different forms of tenure. The analysis conducted must demonstrate that the preferred option delivers best value for money and is affordable within the context of the Holding Body’s approved financial plans (capital and revenue).

It is recognised that in certain locations there may be very limited property options available.

2.6 Holding Bodies must initially consider whether or not property is available from other Holding Bodies, from within the Scottish Government Estate or the Government’s Civil Estate.

2.7 If no suitable property is available from within the public sector estate the Holding Body's Property Adviser must undertake a thorough search of the property market to establish a long list of suitable land and/or buildings.

2.8 Holding Bodies:

• must ensure that there is no premature or ill-considered contact with the seller or landlord before negotiations are conducted by the Legal Adviser.
• must ensure that the transaction has a timetable agreed with the Property Adviser and the Legal Adviser to permit proper negotiation of terms to protect the taxpayer’s interest.
• must ensure that they have written recommendations from the Property Adviser that the terms provisionally agreed for purchase or lease are the best that can be obtained.
• must ensure that negotiations on the legal terms are conducted by the Legal Adviser.
• must ensure that the chosen property is technically suitable for its intended use before any legal commitment is entered into to complete the purchase or lease agreement should this not be the case the cost of conversion should be considered as part of the appraisal exercise.
• must ensure, where necessary in terms of standard commercial practice, that they have taken advice from the Legal Adviser concerning the title.
• may not enter into leases unless they can demonstrate (having taken professional advice) that leasing is the most cost effective option following a detailed financial appraisal.
  

2.9 On receipt of advice from the Property Adviser and Legal Adviser the final decision must be taken by the Holding Body. Completion can only be reached following approval of an appropriate business case by the Holding Body and, where required under the terms of the SCIM, SGHSC.

2.10 Holding Bodies are ultimately responsible for protecting the Scottish Ministers’ interests and certification must be completed at this stage.

2.11 Where a building requires to be fitted out Holding Bodies must ensure that they obtain appropriate professional advice on all aspects of the work to be undertaken.

2.12 Holding Bodies must ensure that all work is appropriately tendered and that all appropriate consents are obtained.

2.13 Transactions must be notified to the Accountable Officer in the circumstances detailed at Annex I .

2.14 Holding Bodies must complete post-transaction monitoring proforma for any acquisition by purchase, lease or excambion and co-operate in other arrangements for monitoring transactions.

• Post-transaction Monitoring Proforma

• Annexes