Housing Development Fund: Andium Homes Limited: Approval of loan for Ann Street Brewery site acquisition

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A decision made 4 August 2017:

Decision Reference: MD-TR-2017-0105
Decision Summary Title:	Housing Development Fund - Andium Homes Ltd: Approval of loan – Ann Street Brewery Site acquisition.		Date of Decision Summary:	3rd August 2017
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:	Housing Development Fund - Andium Homes Ltd: Approval of loan – Ann Street Brewery acquisition.		Date of Written Report:	3rd August 2017
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt – FOI Art. 33
Subject: Housing Development Fund - Andium Homes Ltd: Approval of a loan in the sum of £7,050,000 (Ann Street Brewery Site acquisition.)
Decision(s): The Minister for Treasury and Resources:- approved the loan of £7,050,000 at an interest rate of 5.0% to Andium Homes Ltd for a period from 10th August 2017 expiring at the end of 2019 and on the basis of the Loan Schedule, attached as Appendix 1 to the accompanying written report. authorised the Treasurer of the States to sign the Loan Agreement in accordance with this Ministerial Decision. Agreed that a letter be sent by the Guarantor to advise Andium Homes that full liability for repayments under this loan rests wholly with them and, for example, any loss on the sale of the site in the event of planning permission not being obtained, must not fall to the Guarantor as lender, nor compromise Andium’s Annual Return commitments. This loan to be met from the £207 million allocated from the Bond issue and earmarked for lending to Andium Homes Ltd.
Reason(s) for decision: The loan is required in relation to Andium Homes acquisition of the Ann Street Brewery site and associated buildings in order to provide new affordable homes for sale and rental. This is in support of P.33/2013: The Reform of Social Housing. The States in approving P.129/2014 on 22nd September 2014 agreed that the Minister could lend under Article 3(3)(b) of the Public Finances Law, 2005, to Andium Homes Ltd.
Resource Implications: There are no additional resource implications, financial or manpower as a result of this decision.
Action required: The Head of Decision Support to notify the Head of Shareholder Relations once this decision has been approved. The Head of Shareholder Relations to produce the necessary loan agreement, based on the Model Loan Agreement approved in MD-TR-2014-0084 for signing by the Treasurer of the States. The Head of Shareholder Relations to draft the necessary letter for the Minister as Guarantor to send to Andium Homes. The Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that the Loan request has been approved and that the Loan agreement is being produced.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: