The Strategic Investment Board of Surrey Council is scheduled to review the performance of its investment companies and properties for the 2025/26 financial year. This review will cover entities such as Surrey Property Group (SPG), Surrey Choices, Connect2Surrey (C2S), Halsey Garton Residential (HGR), and the council's investment property portfolio. The board will also consider key risks and mitigation strategies associated with these investments.

2025/26 Performance Review of Investment Companies and Properties

The board is scheduled to receive an overview of the performance of Surrey County Council's investment companies and properties for the 2025/26 financial year. This review is intended to align with good governance practices and will summarise the performance of each entity, detailing the governance processes followed and identifying key risks against planned objectives. The report covers Surrey Property Group (SPG), Surrey Choices, Connect2Surrey (C2S), Halsey Garton Residential (HGR), and the Surrey County Council (SCC) Investment Property portfolio (IP).

These entities are in place to enable the council to participate in trading activities, aiming to deliver more cost-effective service delivery or investment returns for SCC. The Shareholder Investment Panel (SHIP) works within delegated authority limits set by the Strategic Investment Board (SIB), reviewing and challenging the performance of these subsidiaries.

Key points from the report are expected to include:

• Surrey Property Group (SPG): Progress has been made in lettings and renewals across its portfolio, and a recently acquired office in Guildford has been refurbished. It was agreed in January 2026 by the SIB that all assets will transfer from SPG to SCC, and the company will be wound up. This decision was driven by the need to protect SCC's ongoing revenue budget and concerns surrounding future solvency.
• Halsey Garton Residential (HGR): The company continues its controlled wind-down through disposals while managing tenancies. Market conditions and legal processes can affect the pace of sales, but HGR is applying lessons learned to streamline the disposal pathway.
• SCC Investment Property (IP): Strong rent collection has been sustained, and the leasing of vacant space at Brightwells is progressing. The portfolio's exposure remains concentrated in the office sector, with a small number of assets accounting for a high proportion of income. Assuming asset disposals proceed as expected, three investment properties will remain.
• Surrey Choices: Key service developments have been delivered, including the opening of a new respite service, and efforts have continued to strengthen staffing, digital, and governance arrangements. The Support in the Community procurement process caused uncertainty for staff, and changes in national insurance have had an impact. The Shared Lives Contract has been awarded to another provider, and three remaining lots were not awarded.
• Connect2Surrey (C2S): C2S continues to support SCC recruitment needs while navigating lower agency usage. Management's focus is on increasing direct fill placements and ensuring the correct team structure and skills are in place to achieve this. Risks relate to revenue pressure, the pace of candidate transfers, and dependency on direct fill rates. Management has restructured the team to focus on direct-fill placements, with a focus on team members' skill sets and the introduction of Gross Profit targets.
• Hendeca: This company has ceased trading and is expected to apply to be struck off in the summer of 2026.
• TRICS: This entity presented to SHIP and SIB in March 2026, providing an update on progress and future plans.
• UK Municipal Bonds Agency (UKMBA): The council continues to carry the value of this investment at £nil due to material uncertainty related to going concern. Should the company's performance recover, the investment value can be reinstated, but the current treatment removes any future risk for the council.

Overarching risks identified include future delivery challenges, potential loss of benefits associated with portfolio management in property companies, market volatility, negotiation of contract extensions, and ongoing financial pressures. These risks are managed through robust governance and regular performance monitoring.

The report is intended to ensure transparency of the performance of the investment companies and properties, highlight risks and opportunities, and drive accountability, strategic oversight, and continuous improvement in company and investment performance. The recommendations are for the Strategic Investment Board to note the governance process, the content of the report, and the key risks identified and their mitigation strategies.

The report is supported by a Part 2 report and annexes, which contain confidential actions and financial details underpinning the mitigation strategies.

The board members scheduled to attend are Natalie Bramhall, David Lewis, Sinead Mooney, and Tim Oliver OBE (Chairman).

The meeting is scheduled to take place at Council Chamber, Woodhatch Place, 11 Cockshot Hill, Reigate, Surrey, RH2 8EF.