Issue - meetings

Appendix 2 to the report (page 345) is an exempt document.

The Cabinet Member for Finance, Performance and Core Services presented a report on the proposed purchase of the 4.37 acre site at 44-52 River Road, as part of the Council’s Investment and Acquisition Strategy.

The Cabinet Member referred to the strong covenant provided by the existing lease arrangements, which were guaranteed for at least the next 10 years, and the projected investment yield based on a maximum purchase price, which was specified in an exempt appendix to the report, and taking into account guaranteed rental income and the costs of borrowing.  The Cabinet Member also confirmed that the detailed proposals and financial assessment had passed through the Be First project gateway process as well as scrutiny by the Council’s Investment Panel, who both supported the project.

Cabinet resolved to:

(i)  Approve the acquisition of the site at 44-52 River Road, as shown edged red in the plan at Appendix 1 to the report, via borrowing within the General Fund on the terms set out in Appendix 2 to the report;

(ii)  Delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Performance and Core Services, the Cabinet Member for Regeneration and Social Housing and the Director of Law and Governance, to agree the final terms for completion and retain the asset as an investment on the completion of all due diligence; and

(iii)  Authorise the Director of Law and Governance to enter into all necessary agreements, contracts and other documents to complete the freehold purchase.