Purpose

§ 
Following the above Cabinet Approval (25/7/2023) and
subsequent Delegated Officers’ approvals,
Surrey County Council (SCC) entered
into a contractual commitment to jointly sell their Coxbridge farm holdings in Farnham alongside the
Kenward family (as former tenant and adjacent landowner) in January
2024 to Cala Management Ltd (Cala) for £30.756m.  
 

§ 
All payments due to the SCC are payable in three
tranches over a 24 month period from January 2023; the first
payment of £11,060,670was secured in January 2024, with
£7,878,207 due now and £11,817,311 due in January
2026.

§ 
Various additional legal papers have been prepared,
and recommended by SCC’s external lawyers DAC Beachcroft as
part of the second tranche payment mechanism, largely around the
extent of charges needing to be held over the land following
payment of two tranches, together with other associated legal
documentation.

§ 
Attached to this note is a summary recommendation
from DAC Beachcoft and we seek your
approval to finalise same as we secure the second tranche
payment (which is now held by DAC Beachcroft pending formal
completion of the recommended documents).
§ 
As a result of the updated request for legal
documentation, which needs to be signed/sealed,
SCC Legal Property has recommended
that as this is now an additional step/ material change to what was
previously envisaged, so further Delegated Officers Approval is now
requested and obtained.
 
Once SCC Legal has executed the above
documentation it will be dispatched to DAC Beachcroft who will then
be able complete the legal formalities and immediately arrange
transfer of funds to SCC of £7,878,207 comprising:
(i) £7,001,000 tranche
payment now due from CALA (relating to SCC’s land sale to
Cala & (ii) £877,207 tranche payment now due from
Kenwards (relating to restrictive
covenant payment obligations to SCC). 
 

Content

Decision
made:
 
It
was AGREED:
 

1.   
To conclude report.
 
Delegated authority request is duly
recommended to enable the relevant legal documentation to be
completed; the Director of Land & Property will then have
relevant approval in place to ensure conclusion and ensure capital
payments due to SCC as of January 2025 and January
2026.