Aequus, Bath & North East Somerset Council’s housing company, returned nearly £8 million to the local authority in the past five years, it has been revealed.
Aequus Developments, which was set up in 2017, returned a total of £7.9million to the council in capital receipts and revenue.
The figures are set out in a report due to be presented to a council meeting on Thursday 24th March, which also recommends approval of the Aequus Business Plan to 2023/24.
The report also says that Aequus, which was set up to provide affordable sustainable homes to meet the housing needs of local residents and help finance council services, has so far delivered more than 140 new homes.
These include 95 new apartments at Riverside View in Keynsham and 52 private rented sector units, primarily in Bath city centre, mainly let to city workers and young professionals.
In addition, the company is working on projects including:
- Nine low energy family homes (including two shared ownership properties) that are nearing completion at Sladebrook Road in Bath, all the properties are already sold.
- Seven social rented homes athat re under construction at 117 Newbridge Hill in Bath.
- Full planning consent has been secured for 176 units including 44 affordable homes at Midland Road in Bath.
Councillors are now being asked to approve Aequus’ updated business plan. This includes:
- Continuing to focus on commercial financial returns for the council.
- Supporting the council to deliver social and affordable housing on council-owned and acquired land.
- Supporting the council to repurpose its void commercial and corporate estate.
- Supporting the council to tackle the climate emergency through low carbon energy efficient exemplar housing development.
- Recognising Bath Western Riverside East and Midland Road as B&NES key housing delivery sites in the medium term.
- Working in partnership with South Gloucestershire Council to bring forward a pipeline of development sites, to ensure ongoing financial returns to B&NES Council
Councillor Richard Samuel, deputy leader and cabinet member for Economic Development and Resources, said: “Aequus’ remit is to deliver much needed affordable, energy-efficient homes to buy and rent while providing a financial return to the council.
“The council established its own housing company to provide a greater choice of high-quality homes for local people whilst helping to finance key frontline services.
“Full Council will consider this report including the recommendations relating to the business plan and governance.”
All Aequus developments are designed to tackle the climate emergency by reducing carbon emissions, with new build homes EPC A-rated.
The apartments at the award-winning Riverside View are electric only, benefit from additional insulation and a heat recovery ventilation system to reduce energy use.
Properties in Sladebrook Road will be low carbon with energy efficiency measures, such as solar panels, resulting in a minimum 50% reduction in energy costs and the redevelopment of the former council offices in Newbridge Hill, to provide the first council houses in Bath and North East Somerset in a generation, incorporate sustainability measures including replacement windows, additional insulation, low energy lighting and A-rated boilers.
As well as approving the company’s updated business plan, councillors are also being asked to agree to establishing a new holding company for the Aequus group, currently comprising Aequus Developments Ltd (ADL) and Aequus Construction Ltd (ACL).
The report says the creation of a new holding company would improve the efficiency and effectiveness of the group, provide more flexibility for the future and enable the streamlining of dividend payments to the council.
Under the proposal, Bath & North East Somerset Council would become the sole shareholder of the new company, Aequus Holdings Limited, which in turn would hold the shares of both ADL and ACL.
The governance and operations of the existing companies would remain unchanged, with the current ADL Board taking on Board roles for ACL & AHL.
You can read the report to the meeting here.
The informal meeting will be held virtually at 6.30pm on Thursday 24th March. The decisions will be formally ratified at a brief in-person formal quorate meeting on Friday 25th March.
