Issue - meetings

Meeting: 23/09/2021 - Corporate Policy and Resources Committee (Item 27)

27 Market Street Renewal Ltd pdf icon PDF 281 KB

Additional documents:

Minutes:

Members heard from the Assistant Director People and Democratic Services (interim) with a report detailing the current position of Market Street Renewal Ltd and seeking to agree an extension to the shareholder agreement.

 

It was explained that Market Street Renewal Ltd was established in 2017 with a WLDC shareholder loan of £250,000 followed by a further advance in 2018 of £125,000. Dransfield Properties Ltd made equal shareholder loans. The shareholder agreement would have been in place for 5 years in March 2022. Three retail units and four residential units on Market Street in Gainsborough made up the property portfolio of Market Street Renewal Ltd. The properties were now let and the company received a regular income from the investment.

 

Since the inception of the shareholder agreement a total of £24,500 had been paid back to each shareholder plus interest. Due to market conditions the three retail and four residential properties were subject to an overall downward valuation of £135,333 in 2020, making the original business plan aspiration of sale within the first five years unviable. The report set out the cash flow assumptions and business plan forecast for the period to September 2026.

 

Based on the appraisal of the current position and forecast income, Market Street Renewal Ltd were seeking approval from the shareholders to extend the existing shareholder agreement for a further five years to March 2027.

 

Members acknowledged the volatility in the property market and the impact of outside events. Having been moved and seconded, it was

 

            RESOLVED that

 

a)    the updated business plan for Market Street Renewal Limited be noted; and

 

b)    a 5-year extension to the terms of the shareholder agreement with effect from 22nd March 2022, be approved.