Councillor Gerard Brewster - Chair of MSDC Suffolk Holdings Ltd
Minutes:
85.1 Councillor Brewster introduced the report and informed Council that the report provided Council with an update of the performance of its investment portfolio and commercial activities namely CIFCO and Gateway 14 for the period April 2018 and December 2018. It also provided an overview of the key activities that it would be focussing on over the next few months.
85.2 Councillor Mansel sought information on the latest two acquisitions and asked what they were?
85.3 In response the Assistant Director for Assets and Property informed Council that the latest two acquisitions were a property in Ipswich at Olympus Close, which was an estate of small industrial units and the other property was an industrial property in Hemel Hempstead.
85.4 Councillor Field asked if there was a clear business plan for Gateway 14 detailing what was happening with the investment and the timescales?
85.5 In response the Assistant Director for Assets and Property confirmed that the Directors of Gateway 14 were currently working on that Business Plan. The report also highlighted that a number of consultants have been appointed and that was to gather more detailed information for the business case to be put forward. So, there would be a further financial and business case information that would come forward in due course.
85.6 Councillor Otton sought clarification on the review of the current investment strategy and whether members would have some input into this?
85.7 In response the Assistant Director for Assets and Property stated that the Board would be reviewing the investment strategy and that would then become part of the Business Plan which would come before Cabinet for approval so there would be further recourse and would not be reliant on just the Directors’ discretion.
85.8 Councillor Field asked if there were any time limits for the site being classed as an enterprise zone?
85.9 In response Councillor Brewster confirmed that it was time limited and the limit was February 2021. The original business plan did not include the benefits of the enterprise zone, it was calculated without those benefits being taken into account, however there were other benefits that would be beneficial to the businesses on that site.
85.10 Councillor Welham queried whether the site mentioned in paragraph 14.5 of the report was being offered for sale or as a whole.
85.11 In response the Assistant Director for Assets and Property confirmed that it was a whole piece of land that was included in the planning application consent.
85.12 Councillor Matthissen queried whether the possibility of investing in a property in Mid Suffolk or Babergh could cause a division between the Directors.
85.13 In response Councillor Brewster confirmed that there was no division between the Members on the Board.
It was Resolved:-
That the contents of the report be noted.
Councillor Ridley - Chair of BDC Suffolk Holdings Ltd
Minutes:
89.1 Councillor Busby, being a Board Member of Babergh District Council Suffolk Holdings Company declared a local non -pecuniary interest in Item BC/18/33
89.2 Councillor Ridley, Chair of Babergh District Council Suffolk Holdings Company introduced the report and informed Council that the report provided the Council as a 50% shareholder in CIFCO Capital Limited with an update on the performance of its investment portfolio for the period April to December 2018 and provided an overview of the key activities that it would be focusing on over the next few months. The report had been brought to Council for noting only.
89.3 Councillor Ridley also stated that to date eight assets had been acquired with a fund of just over 70% invested at circa £35m. This provided the Council with a 10% equity value of £1.766m. This would bring a net revenue to Babergh District Council of £574K in 2018/19 as this equated to payment for around 17 Grade 4 staff. Since then Councillor Ridley reported that the Company had now got to the situation where subject to finality of negotiations the Company was now just about fully invested. The Company had in fact made the investments by December as was said originally. Councillor Ridley emphasised the importance of this in terms of providing income which was desperately needed in the Council.
89.4 The Chairman thanked Councillor Ridley for his report which was dually noted by Council.