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 Cabinet Member for Business Services and Resident Experience informed Cabinet that consideration of this property acquisition had already been through the Investment Advisory Board and commended its approval to Cabinet.

RESOLVED:

1.         That Surrey County Council provides equity investment and a long-term loan up to the sum stated, to its wholly owned property company, Halsey Garton Property (HGP) Ltd, as outlined in paragraphs 10 to 12 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 long leasehold interest in the property for a purchase cost including associated costs of purchase, as 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.