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 Associate Member for the Built Environment introduced the next two items, both property acquisitions, to Cabinet.

Due to the impact of stamp duty charges, announced on 16 March 2016, revised recommendations for both items were tabled at the meeting.  

RESOLVED:

1.         That Surrey County Council provides equity investment and a long-term loan  its wholly owned property company, the Halsey Garton Property (HGP) Group, as outlined in paragraphs 9 -11 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, 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.