Property Transactions
Additional documents:
Decision:
1. That equity investment and a long-term loan to the County Council’s wholly owned property company, for the amount stated in the submitted report be agreed
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 the County Council’s wholly owned property company be authorised to acquire the long leasehold interest on a property on the Nursling Industrial Estate, Southampton for a purchase cost, including associated costs, 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. The investment will deliver an ongoing income to the Council, enhancing financial resilience in the longer term.
[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]
Minutes:
Acquisition of a long leasehold interest of warehouse premises in Southampton
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. In facilitation of the strategy, Cabinet approved the business case for the creation of a Property Company and associated subsidiaries in May 2014 in order to achieve a balanced property portfolio to generate an income to the council.
The Cabinet Member for Business Services highlighted the key points of this acquisition by the Councils property company and commended the recommendations to Cabinet.
The Cabinet Member for Public Health and the Health and Wellbeing Board requested that his vote against the acquisition was recorded.
RESOLVED:
1. That equity investment and a long-term loan to the County Council’s wholly owned property company, for the amount stated in the submitted report be agreed
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 the County Council’s wholly owned property company be authorised to acquire the long leasehold interest on a property on the Nursling Industrial Estate, Southampton for a purchase cost, including associated costs, 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. The investment will deliver an ongoing income to the Council, enhancing financial resilience in the longer term.