Property portfolio for council
Published on Friday, 6th September 2019
A £30million commercial property portfolio is being set up to boost income targets for Hambleton District Council – and help it become financially independent.
The authority’s new investment strategy is expected to yield revenue of up to £800,000 a year by 2022/23.
Member of the council’s Cabinet this week (Tuesday Sept 3) agreed to recommend to full council that the strategy be approved – giving the green light to allow the purchase of commercial investment properties to help achieve income targets.
The commercial vision is to be financially self sufficient by 2021 which means it needs to earn £400,000 in 2020/21, rising to £800,000 by 2022/23.
“The commercial property portfolio will have a top budget of £30 million but no one purchase will be over £10m,” said Deputy Leader of the Council, Councillor Peter Wilkinson.
“This proposal has the potential to make a significant difference to the council’s finances and therefore to the delivery of council services and projects to improve the community, economic and environmental well-being of the district.”
He said the council will set up a company to manage the portfolio – with legal, financial and property advisors also appointed.
Cabinets decision will be subject to approval by Full Council on September 17.