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Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

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A decision made on 27 August 2021

Decision Reference:  MD-TR-2021-0105

Decision Summary Title:

Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

 

Date of Decision Summary:

 23 August 2021

Decision Summary Author:

Head of Shareholder Relations

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: Approval to enter into a Development Agreement relating to the Limes Site

 

Date of Written Report:

23 August 2021

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Exempt

Articles 26 and 33

Subject:

Andium Homes Ltd: Approval to enter into a Development Agreement relating to the Limes Site

 

Decision(s):

The Assistant Minister for Treasury and Resources decided to -

 

  • provide approval for Andium to enter into a Development Agreement relating to the development of the Limes Site (“the Development”); and

 

  • agree that the Development will be funded from Andium’s Revolving Credit Facility up to a maximum budget of £44,042,852.

 

The approval to be subject to the following conditions: -

 

  • that Andium should provide the Assistant Minister with a copy of the executed Government Agreement that provides for the transfer of Willow House and the Willows Day Care Centre to Andium by 31 October 2021; and

 

  • that Andium should provide confirmation to the Assistant Minister that vacant possession of the Site has been achieved by 31 December 2021.

 

Reason(s) for decision:  

In signing MD-TR-2020-0014, the Assistant Minister for Treasury and Resources required Andium to continue to seek his approval for all Agreed Projects, including their funding mechanism, prior to commencement. P.129/2014 (Budget 2015) Appendix C defines an Agreed Project as “…a project in Jersey selected by the Housing Trust/Association/Company and approved by the Minister for Treasury and Resources as part of an agreed Business Plan or otherwise.”

 

A third-party assurance review has been completed and has not identified any matter which raises risks which cannot be mitigated or addressed by Andium.

 

There are currently insufficient monies available in the Housing Development Fund to provide a loan for a development of this size, therefore Andium will utilise their Revolving Credit Facility to fund the cost of this Development.

 

This approval is required for Andium to progress its strategic objectives of delivering a further 3,000 units in the period to 2030 and is aligned to Andium’s vision and stated aims within its Strategic Business Plan and is compatible with the emerging Island Plan strategy.

 

Resource Implications:

There are no additional resource implications, financial or manpower as a result of this decision for the Government of Jersey. The costs of development of the Site will be borne by Andium.

Action required:

The Head of Financial Governance to notify the Head of Shareholder Relations once this decision has been approved.

 

The Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that Ministerial approval has been provided to the entry by Andium into the Development Agreement.

 

Signature:

 

 

Position: Deputy L. Ash, Assistant Minister for Treasury and Resources

 

Date Signed:

 

Date of Decision:

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