Property nets millions of pounds for vital services
Much-needed money for council services and hundreds of new jobs are being generated by property investment, says a new report.
New figures show that Leicestershire County Council generated £2.7m in the last 12 months – and this is set to rise to £10m a year by 2022.
The council says the extra cash is being ploughed into fixing and preventing potholes, and other front line services, reducing the impact of national funding reductions.
Deputy council leader, Byron Rhodes, said: “Crucially, it means we can invest extra money into vital front line services. We’re injecting £5m into tackling potholes over the next two years, bringing down the inconvenience to people who use our roads, and are exploring how we can bolster social care services, supporting vulnerable people.”
Land and units are bought using one-off pots of capital money.
The council’s property portfolio now totals £100m and is set to grow to £260m by 2022 – the report shows it’s generating just under 12 per cent return on investment, above the industry benchmark.
It includes:
– A new 100,000 sq ft building at Loughborough University Science and Enterprise Park – creating a new HQ for tech firm The Access Group. Announced last month by the Secretary of State for Communities, it will create 500 jobs and £1.6m a year for the council.
– Vulcan Park Business Park in Coalville – offering industrial units and creating 120 jobs, construction is due to start later this year.
– Airfield Business Park in Market Harborough – the council is expanding the site by 80,000 sq. ft to offer industrial units to let, creating 80 jobs. Work is set to get underway this summer
– Quorn solar farm – plans to build a 62-acre solar farm – producing clean, green energy – are being developed
The Corporate Asset Investment Fund annual report and four-year strategy will be considered by the council’s Scrutiny Commission on 12 September and Cabinet on 14 September.
