Issue - meetings

To consider the acquisition of a property investment in Redhill.

RESOLVED that subject to a satisfactory due diligence report being received, the Head of Property, in consultation with the Head of Finance and Executive Members for Property and Acquisitions and Finance, be authorised to: (a) acquire the Freehold referred to in the report for investment purposes; and (b) agree any variations to the heads of terms and to the acquisition price further to external valuation advice and due diligence investigations.

Councillor Mrs N.J. Bramhall, Executive Member for Property and Acquisitions, introduced the report concerning the acquisition of a property investment in Redhill. The Executive noted that full details of the Council’s bid, the financial implications and address of the property had been set out in the exempt Part 2 section of the agenda.    

The Executive Member for Property and Acquisitions highlighted that the Council’s Five Year Plan (2015-2020) identified property investment and development as one of its key objectives. As set out in the report, it was noted this acquisition provided a long term strategic investment opportunity.

Councillor Mrs Bramhall explained that heads of terms for the purchase were in the process of being agreed and highlighted that the report recommended that a delegation be put in place to allow variations to the agreed terms. It was noted that this was to allow for any necessary changes following the usual rigorous due diligence requirements.          

RESOLVED that subject to a satisfactory due diligence report being received, the Head of Property, in consultation with the Head of Finance and Executive Members for Property and Acquisitions and Finance, be authorised to: (a) acquire the Freehold referred to in the report for investment purposes; and (b) agree any variations to the heads of terms and to the acquisition price further to external valuation advice and due diligence investigations.

Reasons for decision: To acquire, subject to the usual due diligence, a freehold interest in Redhill to support the Council’s 5 Year Plan objective to become financially self-sufficient.

Alternative options: Investigate alternative property acquisitions or do nothing.