Agenda item

This paper presents the i4B Holdings Ltd Business Plan for 2018/19 to Cabinet for Shareholder approval in February 2018. It also includes a number of other matters which require Shareholder approval.

It was RESOLVED:

16.1    That the Business Plan for i4B Holdings Ltd, as set out in Appendix 2, be approved.

16.2    That the remaining properties of the initial PRS acquisition programme (PRS 1) be purchased within Brent, for an additional investment of £3.5m;

16.3    That the loan to fund the PRS 1 working capital requirement be increased from £1m to £2.5 million with the facility draw down an additional £1m if required;

16.4    That up to £116m be made available to fund the acquisition of 300 additional private rented sector properties (PRS 2) by i4B Holdings Ltd (subject to approval of the 2018/19 i4B Business Plan);

16.5    That £35m be made available to fund the acquisition of 100 intermediate rent sector properties by i4B Holdings Ltd (subject to approval of the 2018/19 i4B Business Plan);

16.6    That a further £4m be lent to i4B in order to fund the working capital requirements for PRS 2 (£3.2m) and the intermediate rent acquisitions programme (£0.8m).

16.7    That the appointment of the Strategic Director for Children and Young People (Gail Tolley) as a Director of i4B Holdings Ltd in place of the Strategic Director of Community Wellbeing (Phil Porter), be agreed; 

16.8    That the list of Shareholder Consent Matters which will be delegated to the Chief Executive, as detailed at Appendix 1, be agreed; and

16.9    That the remuneration package for the fifth 5^th Company Director, be agreed.

Councillor McLennan (Deputy Leader of the Council) introduced the report and the full 2018-19 Business Plan for the Council’s wholly owned investment Company i4B Holdings Ltd. She stated that the Company continued to support the Council’s objectives in reducing the number of families living in Temporary Accommodation (TA) within the borough. She noted the Company’s additional business plans moving forward, such as expanding the Private Rented Sector (PRS) Acquisition program and establishing an intermediate rent property portfolio, which had required additional funding to be requested from the Council. She also drew Members’ attention to the Company’s plans for a fifth Director to provide greater commercial expertise and also that Gail Tolley was due to replace Phil Porter on the Company’s Board.

Conrad Hall (the Council’s Chief Finance Officer) addressed Councillor Warren’s comments earlier in the meeting. He stated that, whilst it was impossible to totally remove elements of risk from an operating investment Company, the Company’s business case and financial modelling had been tested and continued to be scrutinised by internal and external auditors and the Audit Advisory Committee itself. He made the point that the Company was beneficial to the Council as it reduced the costs paid on families in TA and also provided these families with a much higher standard of accommodation.

Carolyn Downs (the Council’s Chief Executive) also addressed Councillor Warren’s points and stated that the Company was planning to purchase the majority of its properties in Brent moving forward. She noted that the properties which had been purchased outside the borough were often larger properties in order to house larger families who may not be able to afford the rents from sufficiently sized accommodation in Brent. She also said she did not know why the Company’s purchased properties were not all registered at Companies House, but that the Council, as shareholder, would be happy to provide any further information if requested.

Cabinet Members Hirani, Tatler, Miller, Farah, McLennan and Butt spoke respectively in support of the work of the Company. It was emphasised that the Company had delivered in providing good quality housing with a responsible landlord to families in TA and provided more secure tenancies than many other private sector organisations .

It was RESOLVED:

17.1    That the Business Plan for i4B Holdings Ltd, as set out in Appendix 2, be approved.

17.2    That the remaining properties of the initial PRS acquisition programme (PRS 1) be purchased within Brent, for an additional investment of £3.5m;

17.3    That the loan to fund the PRS 1 working capital requirement be increased from £1m to £2.5 million with the facility draw down an additional £1m if required;

17.4    That up to £116m be made available to fund the acquisition of 300 additional private rented sector properties (PRS 2) by i4B Holdings Ltd (subject to approval of the 2018/19 i4B Business Plan);

17.5    That £35m be made available to fund the acquisition of 100 intermediate rent sector properties by i4B Holdings Ltd (subject to approval of the 2018/19 i4B Business Plan);

17.6    That a further £4m be lent to i4B in order to fund the working capital requirements for PRS 2 (£3.2m) and the intermediate rent acquisitions programme (£0.8m).

17.7    That the appointment of the Strategic Director for Children and Young People (Gail Tolley) as a Director of i4B Holdings Ltd in place of the Strategic Director of Community Wellbeing (Phil Porter), be agreed; 

17.8    That the list of Shareholder Consent Matters which will be delegated to the Chief Executive, as detailed at Appendix 1, be agreed; and

17.9    That the remuneration package for the fifth 5^th Company Director, be agreed.