Agenda, decisions and draft minutes

Strategic Investment Board - Monday, 16 June 2025 10.30 am

Venue: Council Chamber, Woodhatch Place, 11 Cockshot Hill, Reigate, Surrey, RH2 8EF

Contact: Huma Younis, Committee Manager  Email: huma.younis@surreycc.gov.uk

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No. Item

25/25

Apologies for Absence

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    To note any apologies for absence.

     

    Additional documents:

    Decision:

    There were none.

    Minutes:

    There were none.

26/25

Minutes of the Previous Meeting pdf icon PDF 128 KB

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    To agree the minutes from the last meeting.

     

    Additional documents:

    Decision:

    These were agreed as a correct record.

    Minutes:

    These were agreed as a correct record.

27/25

Declarations of Interest

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    All Members present are required to declare, at this point in the meeting or as soon as possible thereafter

    (i)            Any disclosable pecuniary interests and / or

    (ii)           Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting

    NOTES:

    • Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest
    • As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner)
    • Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial.

     

    Additional documents:

    Decision:

    There were none.

    Minutes:

    There were none.

28/25

Questions and Petitions

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    To receive any questions or petitions.

     

    Additional documents:

    Decision:

    There were none.

    Minutes:

    There were none.

29/25

Business Plan 2025/26: Surrey Property Group pdf icon PDF 145 KB

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    The purpose of this report is for the Strategic Investment Board (SIB) to approve the annual business plan of Surrey Property Group (SPG), which is a wholly owned Local Authority Trading Company (LATCO). 

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

    Report TO FOLLOW.

    Additional documents:

    Decision:

    RESOLVED:

     

    1. That the Strategic Investment Board review and approve the SPG business plan prepared by the company and reviewed by the Shareholder Investment Panel (SHIP).

     

    1. That the Strategic Investment Board draw upon the above consideration, as well as the latest corporate investments strategy, in the preparation of a consolidated business plan for its investment assets at a following SIB meeting.

     

    1. That the Strategic Investment Board agree to recognise SPG as a trading entity for the remainder of Surrey County Council's existence.

     

    Reasons for Decisions:

     

    • For the SPG Board to have clear agreed direction to work to from the business plan.

     

    • To ensure the company business plan is aligned with the Council’s investment strategy or to request amendments as appropriate.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

     

    Minutes:

    1.     The Board agreed that discussion would take place in the associated Part 2 item, item 7. Recommendations would be agreed pending those discussions.

    2.     Following the Part 2 discussion, the Panel agreed the recommendations subject to the addition of a third; that the Board recognise Surrey Property Group as a trading entity for the remainder of Surrey County Council’s existence.

    RESOLVED:

    1.     That the Strategic Investment Board reviewed and approved the SPG business plan prepared by the company and reviewed by the Shareholder Investment Panel (SHIP).

    2.     That the Strategic Investment Board draw upon the above consideration, as well as the latest corporate investments strategy, in the preparation of a consolidated business plan for its investment assets at a following SIB meeting.

    3.     That the Strategic Investment Board agreed to recognise SPG as a trading entity for the remainder of Surrey County Council's existence.

    Reasons for Decisions:

    ·           For the SPG Board to have clear agreed direction to work to from the business plan.

    ·           To ensure the company business plan is aligned with the Council’s investment strategy or to request amendments as appropriate.

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

30/25

Strategy Update 2025/26: Halsey Garton Residential pdf icon PDF 165 KB

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    The purpose of this report is for the Strategic Investment Board (SIB) to approve the strategy update for Halsey Garton Residential (HGR), which is a wholly owned Local Authority Trading Company (LATCO).

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

    Report TO FOLLOW.

    Additional documents:

    Decision:

    RESOLVED:

     

    1. That the Strategic Investment Board agree the HGR strategy update, including the following substantive elements:

     

    a)    All assets are now considered to be surplus to requirements for the delivery of Council policy.

    b)    In consideration that the Council does not require the assets for delivery of policy, the extinguishing of the long leasehold interest to HGR and the disposal of the freehold of the assets by the Council is to be accelerated where reasonable and possible and ensuring that HGR always acts as a responsible landlord.

    c)    When assets are disposed of outstanding loans on the asset will be repaid, any premium payments received by HGR for its long leasehold interest to be returned to the Shareholder by way of dividend.

    d)    Once all assets are disposed of, HGR should be dissolved and any remaining premium payments received by HGR for its long leasehold interest be returned to the Shareholder by way of dividend.

     

    Reasons for Decisions:

     

    • To align with key strategic principles for the Council’s investments:
      • Investments must either deliver a favourable financial return or provide a service.
      • Investments for the purposes of trading or general commercial investment should produce a financial return that demonstrates financial benefits above the opportunity cost of investment and an agreed risk premium.
    • An improved financial benefit can be gained from disposal of assets.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

    Minutes:

    1.     The Cabinet Member for Property, Waste and Infrastructure introduced the item and summarised the proposal of declaring surplus remaining properties in the portfolio.

    2.     The Leader requested that all districts and boroughs be engaged on the remaining properties marked for disposal that were within their authorities to gauge purchase interest. This was requested to happen within one month.

    3.     The Managing Director of Surrey Property Group noted that ending existing tenancies was being handled extremely sensitively and tenants were given end dates to suit their needs.

    4.     The Board confirmed the need to achieve best value for each sale, by marketing broadly. This prohibited first offering the property to the tenant.

    5.     The Director of Finance reported that £1.65 million had been received from £4.26 million in gross sales, with £430,000 in loan repayments and £250,000 in equity repaid. Around £970,000 remained available for dividend return.

    6.     It was expected that the transfer of capital from SPG to the shareholder was to be done in the most tax efficient manner.

    Actions

    1.     Districts and boroughs be engaged on the remaining properties marked for disposal that were within their authorities to gauge purchase interest. This was requested to happen within one month.

    RESOLVED:

    1.  That the Strategic Investment Board agreed the HGR strategy update, including the following substantive elements:

    a)     All assets were now considered to be surplus to requirements for the delivery of Council policy.

    b)     In consideration that the Council did not require the assets for delivery of policy, the extinguishing of the long leasehold interest to HGR and the disposal of the freehold of the assets by the Council was to be accelerated where reasonable and possible and ensure that HGR always acted as a responsible landlord.

    c)      When assets were disposed of outstanding loans on the asset would be repaid, any premium payments received by HGR for its long leasehold interest to be returned to the Shareholder by way of dividend.

    d)     Once all assets were disposed of, HGR should be dissolved and any remaining premium payments received by HGR for its long leasehold interest be returned to the Shareholder by way of dividend.

     

    Reasons for Decisions:

     

    • To align with key strategic principles for the Council’s investments:
      • Investments must either deliver a favourable financial return or provide a service.
      • Investments for the purposes of trading or general commercial investment should produce a financial return that demonstrates financial benefits above the opportunity cost of investment and an agreed risk premium.
    • An improved financial benefit can be gained from disposal of assets.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

31/25

Investment and Non-Operational Leased Out Properties: Strategic Approach pdf icon PDF 147 KB

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    The purpose of this report is to seek agreement to the approach on reviewing investment and non-operational leased out properties directly owned by the Council, as well as to note a decision by the Shareholder Investment Panel (SHIP) to agree a tenant lease surrender.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

    Report TO FOLLOW.

    Additional documents:

    Decision:

    RESOLVED:

     

    1. That the Strategic Investment Board agree that assets are reviewed on a case-by-case basis as laid out in the report.

     

    1. That the Strategic Investment Board note the decision taken by SHIP to the agreement of a tenant early lease surrender at Park Lodge.

     

    Reasons for Decisions:

     

    • To provide clarity to the Strategic Asset management function on the approach to be taken in managing the Council’s directly owned investment and non-operational leased out properties.

     

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

    Minutes:

    1.     The Board agreed that discussion would take place in the associated Part 2 item, item 8. Recommendations would be agreed pending those discussions.

    2.     Following the Part 2 discussion, the Panel agreed the recommendations.

     

    RESOLVED:

     

    1. That the Strategic Investment Board agreed that assets were reviewed on a case-by-case basis as laid out in the report.

     

    1. That the Strategic Investment Board noted the decision taken by SHIP to the agreement of a tenant early lease surrender at Park Lodge.

     

    Reasons for Decisions:

     

    • To provide clarity to the Strategic Asset management function on the approach to be taken in managing the Council’s directly owned investment and non-operational leased out properties.

     

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

     

32/25

Exclusion of the Public

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    That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.

     

    Additional documents:

33/25

Business Plan 2025/26: Surrey Property Group

    The purpose of this report is for the Strategic Investment Board (SIB) to approve the annual business plan of Surrey Property Group (SPG), which is a wholly owned Local Authority Trading Company (LATCO).  The Council wholly owns Halsey Garton Property Ltd (HGP), the holding company for SPG.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

    Additional documents:

    Decision:

    See Decisions in Item 5.

    Minutes:

    See exempt minute E-15-25.

    See Decisions in Item 5.

34/25

Investment and Non-Operational Leased Out Properties: Strategic Approach

    The purpose of this report is to seek agreement to the approach on reviewing investment and non-operational leased out properties directly owned by the Council, as well as to note a decision by the Shareholder Investment Panel (SHIP) to agree a tenant lease surrender.

     

    (The decisions on this item can be called-in by the Resources and Performance Select Committee)

    Additional documents:

    Decision:

    See Decisions in Item 7.

     

    Minutes:

    See exempt minute E-16-25.

    See Decisions in Item 7.

35/25

Publicity for Part 2 Items

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    To consider whether the item considered under Part 2 of the agenda should be made available to the Press and public.

     

    Additional documents:

    Minutes:

    The Board agreed it was not appropriate to make public the items considered under Part 2.