Decision details

NOTED the additional comments from Akintoye Durowoju representing the i4B Board and Councillor Johnson in relation to the report.

RESOLVED that Cabinet:

(1)    Approve, on behalf of the Council as Shareholder, the i4B Business Plan as set out in appendix 1 of the report.

(2)    Approve the alignment of PRS phase two loan funding, as set out below:

(a)    £24m of phase two funding be used to purchase 60 street properties;

(b)    £86.5m of phase two funding be used for the purchase of a block of 153 units and the purchase of new build opportunities; and

(c)    depending on the viability of new build schemes, the Board be given the discretion to increase/decrease the amount of street properties and new build opportunities purchased.

(3)    Approve increasing the amount of PRS phase one and two properties purchased in Greater London.

(4)    Approve giving the i4B Board the authority to dispose of lower yielding Home Counties properties.

(5)    Approve the updated financial model.

(6)    Approve the financial modelling, as set out below:

(a)        Based on current modelling, for the purchase of 360 street properties and the key worker Wembley DMS block:

·             i4B’s maximum cumulative loan will be £140m;

·             i4B’s maximum working capital will be £6.7m (£7m recommended for contingency);

·             i4B will break even on an annual basis by 2023/24 and break even on an overall basis by 2035/36; and

·             i4B’s forecasted 30 year cumulative profit will be £11.4m.