Andium Homes Ltd: Approval to acquire the Spencer Close and Spencer Lodge properties

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A decision made on 25 February 2022

Decision Reference: MD-TR-2022-133		Public
Subject: Andium Homes Ltd: Approval to acquire the Spencer Close and Spencer Lodge properties
Report Title: Andium Homes Ltd: Approval to acquire the Spencer Close and Spencer Lodge properties		Exempt (Article 26)
Decision(s): The Assistant Minister for Treasury and Resources provided approval for Andium to enter into an agreement relating to the acquisition of the Spencer Close and Spencer Lodge properties and agreed that the acquisition may be funded from Andium’s Revolving Credit Facility.
Reason for Decision(s): Andium is required, under the terms of the new Memorandum of Understanding (“MoU”), shortly to be entered into between the States of Jersey as Guarantor and Andium, to seek the approval of the Guarantor when it seeks to acquire other “assets not being ancillary or incidental to its core business, other than those already specifically approved in” an approved Strategic Business Plan ('SBP'). The proposed acquisition of the Properties is not within Andium's current SBP and will see 36 residential homes and their tenants transfer from private rental in to Andium with the intention to open the properties up for open market sale at the end of the existing tenancies. The Properties and their tenancies are therefore not ancillary or incidental to Andium’s core business. Under the terms of the existing MoU, Guarantor approval is similarly required before Andium seeks to acquire assets that are not ancillary or incidental to the nature of its business. Andium have therefore requested approval from the Assistant Minister for Treasury and Resources to enter into an acquisition agreement for the Properties.
Resource Implications: There are no additional resource implications, financial or manpower as a result of this decision for the Government of Jersey. All costs 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 an agreement to acquire the Properties.
Signature:	Signed By: Assistant Minister for Treasury and Resources
Date Signed:	Date of Decision (If different from Date Signed):