Issue - meetings

Appendix 2 to the report is exempt from publication as it contains commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Finance, Performance and Core Services introduced a report which provided an update on the Council’s Investment and Acquisition Strategy (IAS).

The Cabinet Member stressed that growth, innovation and transformation continued to be key to the future sustainability of the Borough and he alluded to the remaining reports on the evening’s agenda as clear examples of the Council’s ambitions and vision for Barking and Dagenham and its residents.  The IAS represented a key aspect of that vision and the Cabinet Member highlighted a number of the achievements during the past 12 months, as well as the opportunities and pressures going forward and the governance arrangements that underpinned the IAS.

Be First, the Council-owned company established to accelerate regeneration and investment in the Borough, was performing well in the current circumstances and a number of new ‘pipeline schemes’ were being progressed.  The Cabinet Member also pointed to the fact that the level of Affordable Rent properties within new housing developments was now projected at 79% of the total tenure mix, providing much needed affordable properties for the local community.

The report also included details of a proposed amendment to the loan agreement with Robyna Limited for a residential-led scheme at London Road / North Street, Barking.  By Minute 33 (18 September 2018), the Cabinet had agreed to enter into a joint development with Robyna and a loan facility of up to £35m to deliver a 164 unit scheme.  The size of the development scheme had subsequently increased to 196 units and it was proposed, therefore, to increase the size of the loan to £44m to cover the cost of the additional units. 

Cabinet resolved to:

(i)  Approve the updated Investment and Acquisition Strategy set out at Appendix 1 to the report;

(ii)  Note that the IAS and Borrowing Outturn 2019/20 showed a £0.6m underspend for 2019/20;

(iii)  Note the progress being made in meeting the IAS income target and the impact on the IAS of the delays to schemes being completed;

(iv)  Note the governance and controls in place to manage the IAS;

(v)  Note the increase in gross borrowing costs (£105m) and net borrowing costs (£319m);

(vi)  Note the potential for commercial loans and commercial income to support the investment strategy, especially over the short-term;

(vii)  Note the impact of leverage on the IAS and the proposals regarding life-cycle costs reporting and funding; and

(viii)  Agree that the loan to Robyna Ltd in respect of the North Street / London Road residential-led development be increased from £35m to £44m to take account of the increased units to be developed at the site, on the terms set out in Appendix 2 to the report.