Decision details

Disposal of Coxbridge Farm, West Street, Farnham

Decision Maker: Deputy Chief Executive and Executive Director Resources

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

§  Following the above Cabinet Approval (25/7/2023) and subsequent Delegated Officers’ approvals, Surrey County Council (SCC) entered into a contractual commitment to jointly sell their Coxbridge farm holdings in Farnham alongside the Kenward family (as former tenant and adjacent landowner) in January 2024 to Cala Management Ltd (Cala) for £30.756m.  

 

§  All payments due to the SCC are payable in three tranches over a 24 month period from January 2023; the first payment of £11,060,670was secured in January 2024, with £7,878,207 due now and £11,817,311 due in January 2026.

§  Various additional legal papers have been prepared, and recommended by SCC’s external lawyers DAC Beachcroft as part of the second tranche payment mechanism, largely around the extent of charges needing to be held over the land following payment of two tranches, together with other associated legal documentation.

§  Attached to this note is a summary recommendation from DAC Beachcoft and we seek your approval to finalise same as we secure the second tranche payment (which is now held by DAC Beachcroft pending formal completion of the recommended documents).

§  As a result of the updated request for legal documentation, which needs to be signed/sealed, SCC Legal Property has recommended that as this is now an additional step/ material change to what was previously envisaged, so further Delegated Officers Approval is now requested and obtained.

 

Once SCC Legal has executed the above documentation it will be dispatched to DAC Beachcroft who will then be able complete the legal formalities and immediately arrange transfer of funds to SCC of £7,878,207 comprising: (i) £7,001,000 tranche payment now due from CALA (relating to SCC’s land sale to Cala & (ii) £877,207 tranche payment now due from Kenwards (relating to restrictive covenant payment obligations to SCC). 

 

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Decision:

Decision made:

 

It was AGREED:

 

1.    To conclude report.

 

Delegated authority request is duly recommended to enable the relevant legal documentation to be completed; the Director of Land & Property will then have relevant approval in place to ensure conclusion and ensure capital payments due to SCC as of January 2025 and January 2026. 

 

 

Reasons for the decision:

As set out in the above ‘Summary & Recommendation’ sections of the report.

Alternative options considered:

N/A.

Interests and Nature of Interests Declared:

None.

Publication date: 27/01/2025

Date of decision: 24/01/2025