24 Commercial Property Portfolio: Addition of Income Generating Asset
To note the circumstances leading to the proposed acquisition and approve the acquisition of the freehold interest in the property and all associated costs.
The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent as the vendor had stipulated a timeframe that required cabinet approval on 11 December and legal formalities completed by 19 December. Therefore the proposal could not be deferred to the next cabinet meeting. Failure to meet the timeframe would result in the vendor withdrawing from the transaction and the investment opportunity being lost to the council.
1. That the circumstances leading to the proposed acquisition of the freehold interests, and actions and investment due diligence being undertaken by officers and their advisors be noted.
2. That the acquisition of the freehold interest in the property and all associated costs be approved.
3. That the fees & costs of approx. 6.8% of the purchase price (professional fees, Stamp Duty Land Tax and VAT) associated with the process leading to completion of the purchase be noted.
4. That authority be delegated to the chief executive, advised by and in consultation with the strategic director of finance and governance and head of property to:
· Complete the purchase of the freehold interest in the asset
· Agree detailed transactional terms pursuant to the Heads of Terms
· Agree the financing structure to be adopted to fund the acquisition of the assets.
(Note: This decision was subject to an urgent implementation request which has been agreed by the chair of the overview and scrutiny committee. The decision will therefore not be subject to the scrutiny call-in process.)