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Andium Homes Limited: Development Agreement: Petit St. Pierre, La Route de Beaumont, St. Peter: Approval

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A decision made 25 October 2024:

Decision Reference:  MD-TR-2024-798

Public

Subject: Andium Homes Ltd: Approval to enter into a Development Agreement relating to the development at Petit St Pierre, La Route du Beaumont, St Peter

 

Report Title: WR- Andium Homes Ltd: Approval to enter into a Development Agreement relating to the development at Petit St Pierre, La Route du Beaumont, St Peter

Exempt (Article 33(a))

Decision(s):

The Minister for Treasury and Resources decided to provide approval for Andium to acquire the site known as Petit St Pierre, La Route du Beaumont, St Peter (the Acquisition); provide approval for Andium to enter into a Development Agreement relating to the redevelopment of the Site (the Development); and agree that the acquisition of the Site and the Development will be funded from Andium’s Revolving Credit Facility.

Reason for Decision(s):

In signing MD-TR-2020-0014, the then 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 the acquisition of the Site and the Development.  This approval is required for Andium to progress its strategic objectives of delivering new homes for social rental and assisted purchase and is aligned to Andium’s vision and stated aims within its Strategic Business Plan.

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 Minister’s Private Secretary to notify the Head of Shareholder Relations once this decision has been signed.   The Head of Shareholder Relations to advise the Chief Finance and Operating Officer of Andium Homes Ltd that Ministerial approval has been provided to the entry by Andium into the Development Agreement.

Signature:

 

 

Signed By: Minister for Treasury and Resources

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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