Issue - meetings

Companies Performance Update - Autumn 2021

Meeting: 24/03/2022 - Partner, Shareholder and Trustee Executive Sub-Committee (Item 24)

24 Companies Performance Update - Autumn 2021

To note the Autumn 2021 Companies Performance Update and the observations of the Overview & Scrutiny Committee discussed at the meeting on 21 October 2021.

Supporting documents:

Minutes:

The Commercial Ventures Executive Sub-Committee (CVESC) considered the performance of companies owned or part-owned by the Council set out in the Autumn 2021 Companies Performance Update report.

The operational companies currently consist of Greensand Holdings Limited, Horley Business Park Development LLP and Pathway for Care Limited.

Overview and Scrutiny Committee scrutinised this report at its meeting on 21 October 2021. CVESC Members were asked to consider observations from Overview and Scrutiny Committee that was included in the report.

Councillor Archer, Executive Member and Portfolio Holder for Commercial and Investments told the Sub-Committee that since Overview and Scrutiny Committee reviewed the report, the 2020 Accounts for Greensand Holdings Limited and Horley Business Park Development LLP had been fully approved and both set out in the report.

Greensand Holdings Limited which is a property investment and development company, was established to facilitate the Council’s property investment activities. Visiting Member, Councillor Blacker, asked a question on loan interest that had accrued as of 31 March 2021.

Portfolio Holder for Commercial and Investments, Councillor Archer, explained there were two loan funding streams in Greensands – one secured against an office building in Redhill – and the other secured against land owned by the company at Fishers Farm (part of the Horley Business Park development land). A loan to the company accrued loan interest of £1.152m as of 31 March 2021. The office building held by the company provided rental income sufficient for the company to pay interest on the loan to the Council.

RESOLVED that the Commercial Ventures Executive Sub-Committee

AGREED:

1.     To note the Companies Performance Update report (Autumn 2021), and the observations of the Overview and Scrutiny Committee to support the effective consideration of the performance of companies owned or part-owned by the Council.

 

 


Meeting: 18/11/2021 - Partner, Shareholder and Trustee Executive Sub-Committee (Item 4.)

4. Companies Performance Update - Autumn 2021

To consider the performance of companies owned or part-owned by the Council, as of Autumn 2021.

Supporting documents:


Meeting: 21/10/2021 - Overview and Scrutiny Committee (Item 39)

39 Companies Performance Update - Autumn 2021

To note the Autumn 2021 Companies Performance Update, as set out in the report and Annexes, and to make any observations for consideration by theCommercial Ventures Executive Sub-Committee.

Supporting documents:

Minutes:

The Committee received a six-monthly update on the performance of companies owned or part-owned by the Council from the Portfolio Holder for Commercial and Investments, Councillor Archer. Further information was set out in a report to the Committee – Companies Performance Update – Autumn 2021 – which was published in the meeting agenda pack. To support good governance of the Council’s companies, the Committee, and the Commercial Ventures Executive Sub-Committee (CVESC) received regular updates on the performance of these companies.

 

The three operational companies owned or part-owned by the Council currently consisted of:

 

·       Greensands Holdings Ltd (a property development and investment company wholly owned by the Council which owns an office building and a plot of development land). This was currently considered to be performing overall in line with the Council’s objectives and expectations. Members noted that the current directors of the company were William Pallett, Derek Beck and Councillor Michalowski.

·       Horley Business Park Development LLP (which is a joint venture to bring forward planning and development of the proposed Horley Business Park with Millhill Properties (Horley) Ltd and Berwick Hill Properties Ltd). The Council is a partner in this proposed development. This was not currently performing in line with objectives due to activity being limited by matters currently being resolved with the joint venture partners.

·       Pathway for Care Ltd, a supported living provider, where the Council is a minority shareholder. The majority shareholding was held by Transforming Healthcare Group Ltd. Additional information was being sought from the majority shareholders on current performance.

 

It was reported to Members that Camelia Close (Tadworth) Residents Management Company was set up in May 2021 as a short-term arrangement. This was not a Council-owned company but related to a RBBC development site and would be in place until all units were sold, when leasehold management would be transferred to a specialist resident management company.

 

The Council was currently developing Part 2 of its Commercial Strategy to set out its approach to future commercial activity. The O&S Commercial Strategy Scrutiny Panel was due to meet on 2 November 2021 to receive an overview of current work to date.

 

Members asked questions and made the following observations:

 

·       Business rates collection – long-standing proposals to reform business rates were still under consideration by the Government. The Council received around £50m through business rates and retained approximately £2m.

·       Gatwick Airport ‘strategic gap’ – this was Surrey County Council-owned land between the proposed Horley Business Park development site and the M23 spur road. The emerging plans for Gatwick Airport proposed that some of this land be used as a site compound temporarily to aid with other proposed construction work at Gatwick Airport.

·       Greensand Holdings Ltd rental ­income ­– Members asked for clarification on rental income and loan interest. It was confirmed that modest rental income was received on Council owned land at Fishers Farm (part of the Horley Business Park development land). A loan to purchase the land via Greensands Holdings accrued loan interest of £1.152m as of  ...  view the full minutes text for item 39