Issue details

Joint Venture Development Funding

The County Council is party to a joint venture (JV) with Lovell Partnerships for the shared development of land in the Council’s ownership but surplus to service need for the purpose of delivering on the council priorities as well as generating a financial return for the Council.

 

The JV has been established as Kinsted Developments LLP and the County Council is a 50% partner in the LLP through its wholly owned company Edes Estates Limited.

 

The County Council has initially optioned 10 parcels of land to the JV with a requirement to progress to planning approval in line with prescribed viability criteria. The County Council’s capital commitment is the land value whilst Lovell funds work to secure a planning consent.   Additional funding is then required to complete the construction and associated work for the development.

 

The additional funds would be in the form of a loan, the Council having the first choice to provide a loan. The need will be identified in the business case for each site and based on an assessment of the commercial viability of the planned development. The loan will be on the terms agreed in the Partnership Agreement. Current projections across the 10 sites suggest a need for additional funding up to £24m, subject to approval of business cases. The value of any loan would be repayable with interest to the Council through the sales arising from the development in each case.

 

The Cabinet Member for Finance and Property will be asked to approve that up to £9m of credit facility is made available to provide funding for developments at the optioned sites at North Bersted and Littlehampton with the final timing and value of individual loan agreements delegated to the Director of Finance and Support Services in line with approved business cases.

Decision type: Key

Reason Key: Expenditure > £500,000;

Decision status: For Determination

Divisions affected: (All Divisions);

Notice of proposed decision first published: 01/07/2024

Decision due: November 2024 by Cabinet Member for Finance and Property (Cllr Jeremy Hunt)

Lead member: Cabinet Member for Finance and Property (Cllr Jeremy Hunt)

Contact: John Edwards Email: john.edwards@westsussex.gov.uk Tel: 033 022 22299.

Consultation process

Consultees

No consultees currently identified

 

Democratic Services Contact: Judith Shore Tel: 033 022 26052

Background papers

  • None