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RESOLVED:
 

That the Strategic Investment Board
agree the HGR strategy update, including the following substantive
elements:

 
a)   
All assets are now considered to be surplus to requirements for the
delivery of Council policy.
b)   
In consideration that the Council does not require the assets for
delivery of policy, the extinguishing of the long leasehold
interest to HGR and the disposal of the freehold of the assets by
the Council is to be accelerated where reasonable and possible and
ensuring that HGR always acts as a responsible landlord.
c)   
When assets are disposed of outstanding loans on the asset will be
repaid, any premium payments received by HGR for its long leasehold
interest to be returned to the Shareholder by way of dividend.
d)   
Once all assets are disposed of, HGR should be dissolved and any
remaining premium payments received by HGR for its long leasehold
interest be returned to the Shareholder by way of dividend.
 
Reasons for
Decisions:
 

To align with key strategic
principles for the Council’s investments:

Investments must either deliver a
favourable financial return or provide a service.
Investments for the purposes of
trading or general commercial investment should produce a financial
return that demonstrates financial benefits above the opportunity
cost of investment and an agreed risk premium.

An improved financial benefit can be
gained from disposal of assets.

 
(The decisions on
this item can be called-in by the Resources and Performance Select
Committee)