Issue - meetings

The Executive Member for Financial Sustainability presented the report and explained that following the Council’s February 2025 resolution for Millstream Property Investments Limited to dispose of its property portfolio, an approach had subsequently been received from a prospective purchaser expressing interest in acquiring the entire portfolio. Negotiations had progressed and an offer was received which was considered to represent fair value.

The company therefore sought consent from the Council, as sole shareholder, to dispose of the company as a whole, in line with the original intention to liquidate its investment. Members were advised that approval was sought only for the principle of disposal, not the sale price or purchaser. It was further noted that disposal of the company offered financial advantages, including earlier capital receipt, reduced borrowing and associated costs.

Councillor Brittain, the Executive Member for Financial Sustainability, proposed the recommendations as detailed in the report. Councillor Goldspink seconded the proposal.

Members reiterated their support for the principle of disposing of the Millstream assets, as previously agreed, but expressed concern at the delay in progressing disposals over the preceding period and the impact this had on the Council’s financial position. It was suggested that slower action and changing market conditions had reduced the effectiveness of the original approach of selling properties individually. In response, it was clarified that the original strategy had been to dispose of properties gradually as they became vacant, in part to avoid displacing tenants and that lower than anticipated tenant turnover had slowed progress.

It was further noted that the proposed sale of the company represented an unexpected opportunity, enabling properties to be sold with tenants in situ and delivering a more efficient outcome. Members acknowledged the advantages of the revised approach and expressed support for proceeding.

The motion to support the recommendation, having been proposed and seconded, was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that A) acting as Millstream’s sole shareholder, Council uses its reserved power, under the Shareholder Agreement with the company, to consent to Millstream’s request to sell the company in pursuit of the shareholder’s existing resolution that the company disposes of all of its properties.