Rushcliffe achieves further success in asset investments
4 October 2017
Rushcliffe Borough Council is pleased to announce the successful acquisition of 20,000 square feet of prime industrial estate in Coalville, Leicestershire. The building is already tenanted and the Council is looking forward to developing a long term relationship with the occupier providing a local business with stability and security, and the Council with a much needed income stream.
This purchase was made possible after the Council agreed to increase the Asset Investment Strategy fund to £15.5million and to invest in property beyond the Borough boundary. The Asset Investment Strategy is one of the Council’s ways of becoming self-financing in advance of the complete withdrawal of central government support in 2020. By investing in property, the Council is securing a future income stream independent of the Council Tax it collects from residents living in the Borough. If that property is also a business premises (within the Borough) then it also increases the income to the Council collected via Business Rates – all of which helps maintain a steady rate of Council Tax for our residents.
This property, Unit 1 Bardon 22 in Coalville, was purchased for £1.8million and will return a yield of over 7% per annum.
Councillor Simon Robinson, Leader of the Council, said, “I am delighted the Council has been successful in making this acquisition. It is all part of our strategy to develop a mixed portfolio to support the Council finances. We invest in Rushcliffe to support employment and skills, and we have now invested outside the Borough, but still within the East Midlands, as a commercial investment to support the Council’s finances going forwards. This Council is not about cutting services, it is about making its assets and investments go as far as possible to support the people and communities of Rushcliffe.”