Issue - meetings

Loan to Aspire (MRH) Ltd

Meeting: 08/10/2019 - Council (Item 11)

11 Loan to Aspire (MRH) Ltd pdf icon PDF 62 KB

To consider a loan to Aspire (MRH) Ltd to purchase 10 student accommodation units in Cambridge.

 

Additional documents:

Minutes:

As the meeting had passed the two hour mark, the Chair asked Council whether they were willing to continue. Council gave its consent.

 

Councillor Fairhurst presented the report outlining an opportunity to acquire 10 student accommodation apartments in Cambridge through the Council’s wholly owned subsidiary Aspire (MRH) Ltd. He said whilst this had not been formally considered by the Investment Board as it had not been established at the time, the proposal had been scrutinised by prospective members.

 

Councillor Gerard said this represented a good opportunity as diversification of the Council’s investment portfolio was good practice and minimised risk.

 

Councillor Criscione said as a prospective member of the Investment Board he had seen the proposals and was confident that this investment opportunity was a good one. He would be supporting the recommendation.

 

Councillor Khan said he had been sent the proposals regarding this investment opportunity but had not responded as he felt due process had not been carried out. He said such decisions required a formal governance structure to ensure the decision making process was transparent.

 

Councillor Fairhurst said governance had not been comprised as the decision had been brought to Council, in view of Members and the public.

 

RESOLVED to endorse the purchase and loan and to authorise the necessary borrowing.

 

 

The meeting ended at 9.45pm.

 

 

 


Meeting: 26/09/2019 - Cabinet (Item 13)

13 Loan to Aspire (MRH) Ltd pdf icon PDF 64 KB

To consider a loan to Aspire (MRH) Ltd to purchase 10 student accommodation units in Cambridge.

 

Additional documents:

Decision:

RESOLVED to approve:

1)    the acquisition of the 10 student accommodation apartments at Purbeck House in Cambridge;

2)    the loan of up to £2.1m to Aspire (MRH) Ltd for a period of 10 years, at an interest only rate of 5.5%;

3)    a request that Council endorses the purchase and loan and authorises the necessary borrowing.

Minutes:

The Portfolio Holder – Business, Economy, Investment, Jobs, Strategy; Youth Services gave a summary of the report which presented an opportunity to acquire 10 student accommodation apartments in Cambridge through the Council’s wholly owned subsidiary Aspire (MRH) Ltd.

 

Members discussed whether Cabinet should consult the Investment Strategy Board before approving the recommendations. The Director – Finance and Corporate Services said while the Board had not met as an official working group, each member of the Board had been kept informed of the investment, and no objection had been raised. There was a need to make a decision tonight because there would not be another opportunity before Council.

 

In response to a Member question, the Director – Finance and Corporate Services said Pubeck House would be available for other types of market rent rather than solely as student accommodation.

 

In response to a Member question, the Director – Finance and Corporate Services said maintenance was organised by a management company for Purbeck House. The cost of this was included in the service charge and ground rent, and had already been factored into the Council’s costings.

 

RESOLVED to approve:

1)    the acquisition of the 10 student accommodation apartments at Purbeck House in Cambridge;

2)    the loan of up to £2.1m to Aspire (MRH) Ltd for a period of 10 years, at an interest only rate of 5.5%;

3)    a request that Council endorses the purchase and loan and authorises the necessary borrowing.

 

 

The meeting ended at 6.35.