City council approves land transfer for Peterborough’s new university

Cllr Peter Hiller, Cabinet Member for Strategic Planning and Commercial Strategy and Investments told Cabinet members at their online meeting today (September 21): “This significant report is submitted to the Cabinet for members’ approval following the appointment of Anglia Ruskin University (ARU) as the academic partner for the University of Peterborough.

“That follows on from the approval of the File and Business Case for Phase One of the University by the Combined Authority at their meeting on 20 July.

“The report today informs the Cabinet of the proposed change to the planned implementation of the University of Peterborough project, including the arrangements for the proposed transfer of council-owned land into a special-purpose, joint venture company (JVCo) to develop the new campus, the associated issues of the council shareholding, board membership and voting rights.

“JVCo is a company limited by shares and managed by a board of directors. The Combined Authority and ARU will subscribe to shares in the company by making a financial investment, and the council will do similarly by the market-value of its land transfer – with these investments will provide the necessary funding.

“Cabinet members are asked for their approval so that the council can work with the other parties, through JVCo to enable the university delivery programme to progress expediently and efficiently towards common objectives and timescales.

“Members might look upon this report as the ‘end of the beginning’ of the journey towards making our dream of a University of Peterborough a reality for the citizens of our city and to the benefit of generations to come.”

Leader of the council, Cllr John Holdich added: “There is a board going to oversee this with an independent chair.
“What I’ve arranged with the Combined Authority is that we will be part of the interview process for the appointment of that independent chair.”

Section 123 of the Local Government Act 1972 permits the Council to dispose of land in any manner which it wishes to, subject to the provision that the property is not to be sold for a consideration less than the best that can reasonably be obtained.

The Council has not marketed the sites as they form part of a portfolio of assets to be transferred for the University site and the sites in question are identified in the local plan as being assigned for higher education use.

The Council has satisfied itself through an independent valuation being obtained, that best consideration is being secured.

This approach will ensure that any state aid implications are mitigated.

The site is subject to a restriction that no disposition (including a transfer) may be registered without a certificate given by Peterborough Investment Partnership LLP that the provisions of an option agreement dated on 8 May 2015 have been complied with or do not apply, and assurance has been given by the PIP that this certificate will be provided.

The sale of land is exempt from the public contract regulations and therefore there will not be any procurement implications.

The investment into the joint venture is not subject to any procurement requirements.

The land will only be transferred to the JVCo upon the completion of the shareholders’ agreement. As such, each shareholder will contractually commit to their respective investments simultaneously.

Members of Cabinet approved the recommendations unanimously.