Property Transaction 1
Property Acquisition
Exempt: Not for publication under Paragraph 3
Information relating to the financial or business affairs of any particular person (including the authority holding that information)
[The decision on this item may be called in by the Council Overview Board]
Additional documents:
Decision:
RESOLVED:
1. That Surrey County Council agrees to provide equity investment and a long-term loan to its wholly owned property company, Halsey Garton Property Ltd (HGP), as detailed 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 as detailed in the submitted part 2 report for a total purchase cost, including associated costs of purchase, as set out 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.
Minutes:
The Cabinet agreed that Recommendation 3 in the report should be amended so that it refers to the ‘total cost’ rather than the ‘purchase cost’.
RESOLVED:
1. That Surrey County Council agrees to provide equity investment and a long-term loan to its wholly owned property company, Halsey Garton Property Ltd (HGP), as detailed 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 as detailed in the submitted part 2 report for a total purchase cost, including associated costs of purchase, as set out 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.