Financing Purchase of Residential Block by i4B or First Wave Housing
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
We have now agreed a price and received the heads of terms from Quinatin, we now need approval from cabinet to go ahead with the deal before the director of property can enter into negotiations on our behalf.
Decision deferred: from September 2019 to October 2019 Cabinet.
Reason for deferral: To allow further review.
i) Cabinet approved an equity investment in the existing i4B street purchases programme by purchasing i4B shares up to a maximum of £21.8m for the first 300 properties, as agreed in principle by Cabinet in February 2019.
ii) Cabinet agreed for new loan facilities of up to £110.5m be made available to i4B and First Wave Housing for phase 2 of the PRS purchase programme, including the potential Quintain block purchase.
iii) Cabinet agreed that drawdowns on the loan facility to finance the potential Quintain block E01 02 purchase would be conditional on the negotiation of points as described in paragraphs 3.15 and 3.16 below.
iv) Cabinet delegated to the Director of Finance, in consultation with the Deputy Leader, authority to determine whether the conditions set out in paragraphs 3.15 and 3.16 below have been discharged.
v) Cabinet agreed for equity investment of up to £22.1m for phase 2 of the PRS purchase programme, including by purchasing i4B shares up to a maximum of £22.1m.
vi) Cabinet agreed to delegate the precise terms and mix of loan and equity funding for phase 2 of the PRS purchase programme to the Director of Finance, such that the total funding for phase 2 of the PRS purchase programme does not exceed £110.5m.
vii) Cabinet noted the new details of the potential block purchase from Quintain, together with the financial and legal implications.
Reason Key: Signficant expenditure/savings of £500k or more;
Wards Affected: (All Wards);
Contact: Craig Lane, Strategy and Delivery Lead Email: Craig.Lane@brent.gov.uk.
Report author: Peter Gadsdon
Publication date: 15/10/2019
Date of decision: 14/10/2019
Decided at meeting: 14/10/2019 - Cabinet
Effective from: 22/10/2019