Lincolnshire Council buys properties in Yorkshire

A Lincolnshire council has spent £5.5m on buying a gym and a lingerie factory in Sheffield.

West Lindsey District Council, which purchased the two properties occupied by Better Gym and Panache Lingerie, told the BBC that the rental incomes would help pay for public services.

It spent £2.35m on a Travelodge in Keighley, West Yorkshire, last year.

The BBC reported that opposition groups have criticised the council for making investments outside its area.

According to the Local Democracy Reporting Service, the purchases will see the council collect £164,000 a year in rent for the gym on Penistone Road, which it bought for £2.5m.

It will also receive £275,000 a year for the Panache Lingerie unit based at Drake House Crescent, for which the authority paid £3m.

Alan Robinson, strategic lead for people and governance at the council, told the BBC that the potential income from rent and future resale “will enable further investment in West Lindsey to support services, economic regeneration and growth.”

“This income is vital in providing much-needed revenue for the council, supporting the continued provision of services in West Lindsey.”

He said the council followed a stringent set of guiding principles when it invested.