Purpose

To consider different options and propose the
most appropriate future management arrangements for residential
properties purchased by Downshire Homes Limited, with funding
provided by Bracknell Forest Council, recognising that a similar
number of properties are owned directly by the Council. Operational
management of both portfolios is provided by the Council’s
Housing Team.

Decision

 
i.      
to consolidate the ownership and management of the
Council’s housing portfolio by transferring (at market price)
the Downshire Homes Ltd properties to the Council by March 2024 is
agreed.

 
ii.    
that the 4 properties currently occupied by tenants
holding assured shorthold

tenancies (ASTs) are offered for sale to registered
social landlords is agreed, noting that they will be included in
the transfer of properties to the Council if sales cannot be
secured in the timescale above.

 
iii.   
to facilitate the consolidation in the most tax
efficient way, supports the director(s) of DHL to progress a
solvent liquidation of the company, through which its assets will
transfer to the Council as shareholder and agrees to indemnify the
directors, the company and the appointed liquidator against any
potential claims arising from this act.

 
iv.   
a key factor in the proposed approach will be the
value of the existing

loans from the Council to DHL compared with their
original purchase price and funding from Council loans and that
current expectations based on indicative valuations of a sample of
the properties are that the sums will broadly match;
 
v.    
in the event that
the value of the properties has increased materially
at the time of the transfer compared with the original purchase
price, its agreed that the Executive Director: Resources be
authorised to use Council reserves to settle any resultant capital
gains tax liability, as set out in paragraph 5.20.

 
vi.   
the Legal Services Manager be authorised to conclude
the appropriate legal
agreements to enact the proposals above.