Decision details

To propose that Welland Homes Ltd acquires seven market houses in Crowland, from a developer and to seek shareholder approval for the acquisition.

1)      To approve the business case for the acquisition, by Welland Homes Ltd, of seven houses for the purposes of a market rental investment

2)        That the refreshed business plan and budget is approved and included as an amendment in the SHDC Quarterly report to members.

3)        That delegated authority be granted to the Deputy Chief Executive (Corporate Development) and S151, to (i) approve the terms of any loan agreements required; (ii) approve the value and the profile of any periodic cash flow payments to be made to the Company, as required to support the Company in the acquisition of the proposed investment properties.

4)        To reaffirm the delegated authority, granted by Council on 25^th March 2015, to the S151 Officer, to approve the final mix of use of reserves and borrowing in line with the business plan and Council Treasury Management Strategy.

5)        To delegate to the Deputy Chief Executive (Corporate Development) and S151, to agree the contractual matters (including the terms and conditions which may represent a minor variation to the scheme approved in the business case) such as signing the contract/transfer document and other incidental actions that may be required, and approving the associated due diligence and valuation required to purchase the properties.

The delivery of seven additional homes, for Welland Homes will provide the following benefits:

• Support the delivery of the Corporate Plan 2019-23 objectives to deliver new homes for our residents and provide a dividend to Council through Welland Homes and to ensure that residents are enabled to live in high quality housing no matter the tenure.
• As a long term investment, the potential that the properties will appreciate in value.
• The delivery of 7 additional homes will help to meet the Business Plan target to have 60 homes in ownership.
• The delivery of another scheme which provides a positive return on investment will have a positive effect on the amount of profit available to distribute as a dividend or charitable donation in the future.

·       As the company does not currently have any homes in Crowland, this scheme will diversify the stock portfolio.

Do nothing. In this event, the company will not acquire the dwellings and neither the Company or the Shareholder will benefit from the expected return on investment. Officers will explore alternative proposals for Welland Homes investment.

None.