Issue - meetings

To consider a strategy for investment in residential properties.

RECOMMENDED:

(a)        That the Residential Property Asset Investment Strategy attached to Report Item 11 to the Cabinet be approved;

(b)        That the proposed level of initial investment, as set out Report Item 11 to the Cabinet, be approved;

(c)        That the Chief Executive, the Executive Head Governance and Regulation, and the S151 Officer, in consultation with 2 Portfolio Holders determined by the Leader of the Council, be authorised to take all decisions in respect of the Strategy, including entering into all necessary contracts and agreements; the setting up of the Wholly Owned Company(and subsidiaries) and related costs, to implement the Residential Property Asset Investment Strategy as set out in Report Item 11 to the Cabinet; and

(d)        That the appointment of 2 Cabinet Members and 2 senior officers to the board of directors of the Wholly Owned Company, following its incorporation, be approved such individuals to be agreed by the Chief Executive in consultation with the Leader of the Council.

The Cabinet considered the implementation of a new strategy for investment in residential property to complement the strategy for investment in business assets that had been considered by the Cabinet on 20 February 2017 (Minute 62 refers).  The purpose of the new strategy was to invest in residential property, in particular to purchase privately owned residential properties for letting to private sector tenants; and to develop Council-owned sites to build housing to deliver a range of housing and tenure types.  This would make a contribution to closing the identified funding gap in the Council’s finances.

Members were advised that the strategy would be implemented through the establishment of a Wholly Owned Company, limited by shares, to acquire, build, hold and manage the properties through a range of subsidiary companies.  The Company would have a Board of Directors comprising 2 members of the Cabinet and 2 senior officers.  The Company’s Memorandum and Articles of Association, business plan and documentation would set out the relationship between the Council and the Company and determine the operational framework.

It was proposed that the investment would be funded through current reserve balances together with loans to the company, on commercial terms, through the Public Works Loans Board.  Full details of the financial context for investment were set out in Section 3 of Report Item 11 to the Cabinet.

RECOMMENDED:

(a)         That the Residential Property Asset Investment Strategy attached to Report Item 11 to the Cabinet be approved;

(b)        That the proposed level of initial investment, as set out Report Item 11 to the Cabinet, be approved;

(c)         That the Chief Executive, the Executive Head Governance and Regulation, and the S151 Officer, in consultation with 2 Portfolio Holders determined by the Leader of the Council, be authorised to take all decisions in respect of the Strategy, including entering into all necessary contracts and agreements; the setting up of the Wholly Owned Company(and subsidiaries) and related costs, to implement the Residential Property Asset Investment Strategy as set out in Report Item 11 to the Cabinet; and

(d)        That the appointment of 2 Cabinet Members and 2 senior officers to the board of directors of the Wholly Owned Company, following its incorporation, be approved such individuals to be agreed by the Chief Executive in consultation with the Leader of the Council.