Decision details

The board considered a report of the Director of Commercial and Investment that sought approval of loan investment from the Commercial Investment Fund / Residential Investment Fund (CIF/RIF) to Warwickshire County Cricket Club for £18m for up to a maximum of 10 years to facilitate the development of a new 148-bedroom hotel and new stand at Edgbaston Cricket Ground subject to the terms and conditions of the loan set out in the report.

Nick Oakley, West Midlands Development Capital, reported that hotel was part a redevelopment of the cricket ground and forms part of a wider masterplan for the overall stadium that would enable it to compete with other international cricket grounds in the country.

It was noted that the proposed term of the loan (10 years) is outside of the CIF/RIF lending parameters and an exception would be needed to allow this (currently 5 years maximum). The loan would be subject to significant conditions and would not be drawn for 2 years. Nick Oakley reported that the WMCA would also need increase the overall commitment of CIF and RIF to accommodate this request.

The Executive Director of Finance and Business Hub, Linda Horne, reported that the WMCA Board had agreed to increase the commitment cap on the WMCA’s Commercial and Residential Loan Funds by (up to) an additional £40m (to £250m) at its meeting on 15 March 2024 to accommodate this loan.

The Director of Commercial and Investment, Ian Martin reported that all of the conditions contained in the loan agreement would need to be satisfied before the loan is drawn and the cricket club would need to undertake a lot of work, working with the fund manager for this happen.

The Chair noted the conditions of the loan were of critical importance.

Nick Oakley (WMDC) reported that the fund manager would work with the cricket club to ensure they satisfy the loan conditions and undertook to report back on progress at the end of the year.

Resolved that:

1.    The powers and ability of the WMCA to make the proposed loan be noted;

2.    The comments made by the Investment Panel when the report was presented be noted;

3.    The loan investment from the Commercial Investment Fund/Residential Investment Fund of £18m for a term of 10 years to Warwickshire Country Club, as per the term and conditions set out in the paper be approved including endorsing an increase to the current maximum loan term of 5 years to 10 years to accommodate this loan and

4.    The negotiation and approval of the final terms of the loan to the Director of Commercial and Investment in consultation with the S.151 Officer and Monitoring Officer be agreed.