David T. C. Davies – 2016 Parliamentary Question to the Department for International Trade
The below Parliamentary question was asked by David T. C. Davies on 2016-09-12.
To ask the Secretary of State for International Trade, what factors Ministers in his Department took into account when signing a memorandum of understanding with Aventa Capital in 2014.
Greg Hands
A Memorandum of Understanding (MoU) is a high-level arrangement, which is not legally binding, and enables the participants to work together toward a desired outcome. Between the period April 2014 to October 2015, the Regeneration Investment Organisation (RIO) negotiated MoUs with seven companies. Only one of those MoUs remains in place.
Aventa is a regeneration investor and comprises a regulated asset management company and a vehicle for managing early stage development and construction risk. The Regeneration Investment Organisation and Aventa Capital MoU was developed in October 2014 to support Aventa’s work in seeking to develop a regeneration fund and thereby encourage institutional investment into UK regeneration projects. The Department felt the proposal covered by the MoU was viable given Aventa’s sector and management experience.
There was no commitment on the part of RIO to provide any capital or resource in connection with the agreement. In addition, any recommendation from Aventa would have been reviewed and subjected to due diligence by the developer as a commercial partner. The MoU was concluded, by mutual agreement, following meetings with officials during December 2014.
