Decision details

To approve recommendations for purchase and sale of assets and terms of leases (over £1m – Cabinet decision, under £1m – Cabinet Member Decision, in consultation with the Leader)

The Investment Strategy agreed by Cabinet in July 2013 was developed in response to the requirement for the Council to maintain its financial resilience in the longer term. The Cabinet Member for Business Services and Resident Experience highlighted the key points of the proposal and commended the recommendations to Cabinet.

RESOLVED:

1.       Surrey County Council provides equity investment and a long-term loan to its wholly owned property company, Halsey Garton Property Group as outlined in paragraphs 11 to 13 of the submitted report.

2.       That Legal Services be authorised to agree appropriate contractual arrangements for the provision of financing on behalf of the Council, with funds to be released upon the completion of appropriate due-diligence in relation to the property acquisition.

3.       That HGP be authorised to acquire the freehold interest in the property detailed in the submitted report for a purchase cost, including associated costs of purchase, also detailed in the submitted report.

Reasons for Decisions

The provision of financing to the Council’s property company to facilitate the proposed investment acquisition is in accordance with the Council’s Investment Strategy and provides an asset that will contribute to the creation of a diversified portfolio over time to spread risk. 

The investment will deliver an ongoing income to the Council, enhancing financial resilience in the longer term.