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 £11,060,670 was secured in January 2024, with second payment secured of £7,878,207 secured in January 025, and final payment of £11,817,311 due in January 2026.

§  The sale contract (19/1/2024) requires the above-named relevant parties to legally complete the ‘Retained Land Deed of Easement’ and ‘Open Space Overage Deed’ documentation.  The reason as to why this was not completed at the time of the sale contract was that it was beholden on Waverley Borough Council’s Local Planning Authority to conclude ‘Reserved Matters’ as part of Cala Management Limited securing (post 19/1/2024) a detailed planning consent for the residential development.

§  Attached to this note is an Executive Summary recommendation from DAC Beachcroft and your approval is now sought to finalise same.

§  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; DACB Beachcroft has confirmed that this does not compromise the final tranche payment of £11,817,311 to the County Council due in January 2026, nor any other remaining contractual terms of the sale contract (19/1/2024).

Decision

Decision made:

It was AGREED that:

1. To conclude report.    

Reasons for the decision

Reasons for Decision:  As set out in the above ‘Summary & Recommendation’ sections.

Alternative options considered

NA