Issue - meetings

Acquisition of Freehold in Salfords

Meeting: 29/11/2018 - Executive (Item 83)

Acquisition of Freehold in Salfords (exempt)

To consider exempt information in relation to the acquisition of a freehold in Salfords.

Supporting documents:

Decision:

RESOLVED that the exempt information in relation to the acquisition of a freehold in Salfords be noted.

Minutes:

Councillor Mrs N.J. Bramhall, Executive Member for Property and Acquisitions, introduced the exempt report and Councillor T. Schofield, Executive Member for Finance, provided an update on the financial information set out in the addendum to the agenda.

During the discussion the Leader of the Council, the Executive Member for Property and Acquisitions, and Executive Member for Finance responded to questions concerning the purchase.   

RESOLVED that the exempt information in relation to the acquisition of a freehold in Salfords be noted.


Meeting: 29/11/2018 - Executive (Item 79)

79 Acquisition of Freehold in Salfords

To consider the acquisition of a freehold in Salfords.

 

Supporting documents:

Decision:

RESOLVED that subject to a satisfactory due diligence report being received, the Head of Finance and Assets, in consultation with the Director for Finance and Organisation, the Executive Member for Property and Acquisitions, and Executive Member for 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 as set out in the exempt Part 2 report.

 

Minutes:

Councillor Mrs N.J. Bramhall, Executive Member for Property and Acquisitions, introduced a report concerning the acquisition of a property freehold in Salfords. 

The Executive Member 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, Councillor Mrs Bramhall explained that this acquisition would provide the Council with rental income from occupational leases, with scope for rental and asset value growth in the short term.

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

The Executive Member for Property and Acquisitions explained full details of the Council’s bid, including the financial implications, had been set out in the exempt Part 2 report on the agenda. It was also highlighted that additional exempt information, concerning financing options for the purchase, had been published via an addendum.

Clerk’s note – at this point in the meeting (at 8.00pm) agenda item 5a (Acquisition of Freehold in Salfords) was adjourned so that exempt information, at agenda items 8 (Exempt Business) and 9a (Acquisition of Freehold in Salfords – Exempt), could be considered ahead of making a decision.

Clerk’s note – The minutes of the meeting reflect the order of business listed on the published agenda, not the order taken during the meeting.

On conclusion of agenda item 9a (at 8.12pm) the Executive returned to agenda item 5a and;

RESOLVED that subject to a satisfactory due diligence report being received, the Head of Finance and Assets, in consultation with the Director for Finance and Organisation, the Executive Member for Property and Acquisitions, and Executive Member for 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 as set out in the exempt Part 2 report.

Reason for decision: To obtain Executive authority to proceed with a freehold acquisition in Salfords to secure additional income to support the Council’s 5 Year Plan objective to become financially self-sufficient.

Alternative options: Investigate alternative property acquisitions, investigate a joint venture on the purchase or do nothing.