Issue - meetings

Loan Agreement Proposal

Meeting: 18/11/2021 - Executive (Item 16)

16 Loan Agreement Proposal EXE21-152 pdf icon PDF 99 KB

Reporting Person – Leigh Clarke

Additional documents:


The Executive received a report which sought approval to provide Greenfield School with a new 3 year loan facility.  In 2019, the Council had provided the School with loan finance to move to its new site on Old Woking Road.  A further loan facility was agreed for the development of the site, in total a facility of £11m covering the site acquisition plus development costs.  The Executive was informed that the School had requested access to the existing approved Council loan facility,  However, as the project costs were currently forecasted to exceed the funding available to the School, drawdown of those funds had not been approved and could not be considered until the Council had confidence that finance facilities existed to deliver a complete scheme.

The Executive was of the opinion that it was in the Council’s interests for the School to be able to complete the development which would meet the original objectives of increased school places.  The Executive supported the proposal that an additional short term loan facility be made available to enable the essential works to be completed.  The Executive also supported the proposal that the Strategic Asset Manager would monitor progress on the project.

It was highlighted that confidential supporting information was provided in Part II of the Agenda.


That  (i)    a new 3 year loan facility to cover construction costs of £2.5m plus accrued interest to completion of the development (assumed to be £600k), be made available to Greenfield School at 3.5% interest;

          (ii)   on 22 July 2022, or earlier, the amounts advanced from the existing £11m loan facility be converted into a 50 year annuity at 1% over the PWLB rate; and

          (iii)  the Council secure a charge over the remaining investment property asset held by the School and the disposal proceeds from this asset are required to be applied to reduce the outstanding loan.

Reason:   To approve additional Loan Finance for Greenfield School.