Decision details

The Cabinet will be asked to approve proposals to enter into an investment arrangement with an Institutional Investor and an ApartHotel Operator, in support of the objectives of the Council’s Investment and Acquisition Strategy.

The Cabinet resolved to:

(i)  Agree the draft Heads of Terms between the Council and the Institutional Investor as detailed in Appendix 1 to the report;

(ii)  Agree that the Council enter an Agreement to Lease with the Institutional Investor and the Aparthotel Operator on state aid compliant market terms;

(iii)  Agree that the Council enter a 50-year Head Lease with the Institutional Investor on state aid compliant market terms;

(iv)  Agree that the Council grant a 25-year sub-lease with an option to renew to a specialist Aparthotel operator;

(v)  Delegate authority to the Chief Operating Officer, in consultation with Director of Law and Governance and the Cabinet Member for Finance, Performance and Core Services, to negotiate final heads of terms, final commercial and lease terms and agree the contract and ancillary legal documents to fully implement and effect the proposals set out in the report;

(vi)  Authorise the Director of Law and Governance, or an authorised delegate on her behalf, to execute all the legal agreements, contracts and other documents on behalf of the Council; and

(vii)  Delegate authority to the Chief Operating Officer, in consultation with Director of Law and Governance, to incorporate a special purpose vehicle (whether a company or Limited Liability Partnership) if considered necessary and appropriate, such incorporation to include such shareholders or members’ agreement as may be required.