Executive agree next steps in company divestment
The Executive has agreed the next steps in the council’s Company Divestment Strategy, approving three reports during last night’s extraordinary meeting (Wednesday 18 March).
Members of the Executive considered three proposals, previously reviewed by the Resources and Finance Scrutiny Committee, that support the council’s Improvement and Recovery Plan, which aims to unwind complex company structures, dispose of commercial assets and reduce the council’s historic levels of borrowing.
Victoria Square Woking Ltd (VSWL)
The first report approved proposals for VSWL, a wholly owned Woking Borough Council company, to market key assets within the Victoria Place development.
Following the decision, VSWL can begin marketing the assets once several key matters are resolved. The company will provide monthly progress updates to the council’s Shareholder Executive Committee. Any sale will require Executive approval before completion.
The approved report also sets out future arrangements for the car parks serving the Victoria Place development.
Wolsey Place Shopping Centre
A second report approved plans to jointly market Wolsey Place Shopping Centre, Wolsey Walk residential units, Alexander House and Export House, assets owned directly by the council, alongside units owned by Victoria Square to maximise overall value from the combined site.
ThamesWey Central Milton Keynes (TCMK)
A third report confirmed Executive agreement, in principle, to the disposal of energy company, ThamesWey Central Milton Keynes Ltd.
As part of the approved approach to ensure a future sale is possible, a debt‑for‑equity swap, where a company’s debt is converted into newly issued shares, will now be presented to Council in April for final approval.
The disposal of TCMK is a key objective within ThamesWey’s business plan and represents an important step in reducing the council’s overall borrowing.
Cllr Dale Roberts, Deputy Leader of Woking Borough Council and Portfolio Holder for Finance, said:
These decisions mark another important step in our company divestment strategy, helping to simplify complex company structures and continue the work of reducing historic borrowing.
This work also enables the council to refocus on its core responsibilities to residents and businesses across the borough.
We recognise the importance of stability for tenants in buildings proposed for sale, and established processes will be followed to ensure they are supported and kept informed as work progresses.
Our focus is to deliver continuity for tenants whilst securing a more sustainable financial position for Woking ahead of the formation of West Surrey Council.
Watch the recording of the extraordinary meeting online
Read the Company Divestment Strategy report