Council invests in new property to help fund frontline services
As part of its Property Investment Strategy, the council has acquired the freehold of the B&Q store in Lister Road.
Located on a 2.33 acre site, the retail warehouse will provide additional income in excess of £600,000 per year for the council.
Agreed by councillors in February 2017, the Property Investment Strategy sets out a commitment by the council to invest an additional £30 million in property across the borough to provide an alternative source of income.
The council’s property portfolio raises an income of almost £17 million per year, more than double the income it receives from council tax.
In fact, only six pence of every pound spent by the council on providing services comes from council tax compared with 14 pence from rents on commercial properties owned by the council.
Cabinet Member for Regeneration and Property Cllr John Izett said: “The purchase of the B&Q store completes the investment of this dedicated council-supported fund which has increased our income by £1.74 million per year to fund council services and is currently returning almost 8% on the money invested.
“I am delighted that it has been possible to invest in a Basingstoke property at a competitive price off market.”