Loans provided by Rotherham MBC

The Council has the following outstanding loans to organisations, as at 8th September 2017.

Rotherham United Football Club

The Council has provided two loans in respect of the new ground for Rotherham United Football Club.  Details of the loans, both of which are for 10 years, and the amounts outstanding as at 8/09/17, are below:

Loan 1 to RU Estates – £2.800m issued in April 2012.  £2.726m outstanding.

Loan 2 to ASD Lighting PLC Pension Fund – £1.327m issued in July 2012.  £663k outstanding.

The interest rate of the loans is considered to be commercially sensitive information, but is at an appropriate market rate.  Both loans are fully secured on the assets of the respective companies, therefore, there are no implications for the Council’s loans in the event that the Football Club goes into administration.

Chris Hamby

The Council has provided three loans to Chris Hamby in respect of the development of Rotherham High Street.  The loan facilities were to facilitate the purchase and subsequent re-development of No’s 17,19 and 21 High Street along with the following listed buildings: No’s 25 – 29 High Street ‘The Three Cranes’; No.29a High Street a former Georgian Town House; and The George Wright Building.  The loan facilities are secured by a Legal Charge over the property assets of Mr. Hamby, including the High Street properties.  All the loans co-terminate in 2036.  The interest rate of the loans is considered to be commercially sensitive information, but is at an appropriate market rate.

Development by a private sector owner was necessary to lever in Heritage Lottery Funding (HLF) to meet the cost of additional works to the listed buildings.

The balance outstanding on the loans as at 8/09/17 is £1,044,455.

Dinnington Resource Centre

The Council has provided a 10 year loan to the Dinnington Resource Centre for £65,856 in respect of the purchase and installation of solar PV panels at the Dinnington Resource Centre, 131 Laughton Road, Dinnington.  The interest rate of the loan is considered to be commercially sensitive information, but is at an appropriate market rate.

The balance outstanding on the loan as at 8/09/17 is £45,522.

Magna Trust

A loan for £300,000 was issued to the Magna Trust in 2006/07 and of this £190,000 was outstanding as at 08/09/17.  The Council issued to Magna a short term loan of £250,000 during 2014/15. This was outstanding as at 8/09/17.

Rotherham RUFC (2004) Limited

A £50,000 short term loan has been provided to the Rugby Club.  This is outstanding as at 8/09/17.

9 thoughts on “Loans provided by Rotherham MBC

  1. Perhaps RMBC would like to loan me £20,000 to pay my mortgage off ? I’m honest, hardworking never been in debt and pay my council tax religiously every month without fail ! DON’T THINK SO !!
    So why in these times when money is so short do they keep throwing good money after bad without a cat in hells chance of ever getting it back. Just another example of how incompetent this Labour controlled council actually is.

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    • It doe have legal rights
      In the past there were local authority mortgages available for working class households.
      However, that being said, there comes to the question of competence and ability.
      There is also confidence and some authorities will have difficulty in getting any confidence ever…

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  2. Reed and co have the business accrument
    Of a pickled Union
    No one I know in the Council have had any
    Experience in private business who have to make a profit
    To survive
    They don’t care it’s not their money
    If it goes tits up so what Write it off and
    Look for another vanaty short term
    Let’s look good project
    We are Labour we will always been re elected in Rotherham
    As the good book says
    For give us we don’t know what we are doing

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  3. If I understand the figures correctly Rotherham football club has paid back only £54,000 of the £2.8 million loan in the last 5 years? This is a market interest rate? (Approx.3.8%)
    Magna owes RMBC £440,000. £190,000 since 2007 and £250,000 since 2015.
    It is staggering that RMBC can lend money to commercial enterprises and at the same time claims it cannot fund healthcare for the elderly nor can it fund school patrol crossings and takes £30,000 over three years from Anston Parish Council’s grant.
    Labour councils eventually run out of other people’s money.

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    • Colin, could it be that RMBC is borrowing from the Public Works Loan Board and then lending on at a presumably higher interest rate?
      PWLB 1 year rates are well below 1 year Libor, and your market rate is some 200 basis points (AKA 2%) over that.

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  4. @rr
    You might be right however the rate of repayments from Rotherham FC.and Magna leaves me in no doubt that RMBC Labour councillors and RMBC Treasury Dept.are financially inept.
    In the commercial and industrial world this would not be allowed to continue. Could it be the case that both organisations mentioned are not considered financially sound enough to borrow from mainstream lenders and persuaded the muppets at Riverside House to lend them public money?

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  5. Pingback: The Week That Was – Last Weeks Top Ten 23rd September 2017 | Rotherham Politics

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