£1.6m shares issued by council housing firm

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Monday, November 25th, 2019 7:05pm

By Andrew Morris - Local Democracy Reporter

Shropshire Council has invested more than £1.6 million into its new housebuilding company.

Cornovii Developments is set to get under way with two housing developments in Ifton Heath and Shrewsbury in the new year.

To get the ball rolling at the company, the authority has issued 1,625,000 shares to represent the value of the land at the two sites.

Mark Barrow, director of place, said: “Cornovii is to increase its share capital from the existing share capital of one £1 ordinary share in order to issue 1,625,000 of ordinary shares to Shropshire Council. 

“The increase is proposed following agreement by full council on September 19 to provide an equity subscription investment of £1.625m to the company.

“This amount represents the value of land to be purchased from the council for sites at Frith Close, Shrewsbury and Overton Road, Ifton Heath.”

He added: “This investment will enable the company to purchase the land required for the first two development sites.

“The purchase of the sites from the increase in share capital combined with approved loan funding will facilitate the development of both sites in accordance with the company’s business plan 2019 – 2020 and enable it to achieve its objectives.”

Mr Barrow added that work to prepare both sites for development was already under way.

“The DNA analysis of bat droppings at Overton Road has now been completed,” he said. 

“The findings show that the droppings in the central part of the roof are from ‘Lesser Horseshoe Bats’. 

“They are considered to be from occasional, or episodic, use so do not present a significant issue. 

“However, given the nature of the buildings and the species present, we will not be able to start works that will impact on the older buildings until mid-March. 

“We are now in the process of consulting with individuals with particular expertise on Lesser Horseshoe’s and will develop a bat strategy accordingly.”

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