Andium Homes Ltd: Extension of Loan 11

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A decision made on 17 December 2020

Decision Reference: MD-TR-2020-0162
Decision Summary Title:	Andium Homes Ltd – Extension of Loan 11		Date of Decision Summary:	17th December 2020
Decision Summary Author:	Head of Treasury and Investment Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Andium Homes Ltd – Extension of Loan 11 – Ann Street Brewery		Date of Written Report:	17th December 2020
Written Report Author:	Head of Treasury and Investment Management		Written Report : Public or Exempt?	Exempt – Article 33
Subject: Andium Homes Ltd – Extension of Loan 11 – Ann Street Brewery
Decision(s): The Assistant Minister for Treasury and Resources:- Approved the extension to the repayment date of loan 11 to 31st December 2021. Authorised confirmation of the loan extension to Andium in line with existing terms.
Reason(s) for decision: The States in approving P.129/2014 on 22nd September 2014 agreed that the Minister could vary the purposes of the Housing Development Fund (“HDF”) to lend to Andium Homes Ltd. Under MD-TR-2017-0105 loan 11 was issued to Andium Homes Ltd for the purpose of acquiring the land of the former Ann Street Brewery. Loan 11 was drawn down from the HDF on 10th August 2017. The total amount drawn was £7,050,000 with an extended repayment date of 31st December 2020. This site will form part of a wider development in the north of town and Andium have only recently (Nov-20) submitted their planning application through the Development Partner. This is yet to be registered by the Planning Department. When loan 11 was originally granted it was intended that it would be repaid in full once the main development of the project on the Brewery site commenced. Given that the commencement of the main contract for this project has been deferred it is appropriate to similarly extend the final repayment date of the loan. Once an implementable planning permit has been received, construction is intended commence immediately. It will be at this point during 2021 that the acquisition funding is intended be rolled up into the development project funding. The use and operation of the HDF allows for the acquisition and development of sites and there is sufficient capacity within the HDF to provide the loan until 31st December 2021. Liability in the event of non-repayment is still mitigated back to Andium without recourse to the Guarantor.
Resource Implications: The extension of the loan will result in additional interest payments of approximately £350,000 which will be identified as income into the Housing Development Fund in 2021.
Action required: The Head of Financial Governance to notify the Head of Treasury and Investment Management once this decision has been approved. The Head of Treasury and Investment Management will provide a formal confirmation to Andium of the loan extension under existing terms.
Signature:		Position: Deputy L Ash, Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision: