Croydon Council has purchased two more local properties to provide rental income for its frontline services delivered to residents.
The properties bought by the council are occupied by builders’ merchants Selco in Imperial Way, Waddon, and medical supplies specialist Alliance Healthcare at Vulcan Way in New Addington.
The deal means that the council will help fund the increasing ongoing costs of frontline services by getting a net annual income (after interest) of around £330,000 from the two tenants, which between them employ over 300 people.
The council approved a £100 million investment fund and related asset investment strategy last year to purchase commercial property and bring in revenue funding to help with the borough’s operational costs. This has now been increased to £200 million.
These latest acquisitions, costing £14 million, come after the council bought The Colonnades retail and leisure park on Purley Way for £53 million earlier this year. The Colonnades’ 12 on-site businesses will provide an annual income of around £1.4m net of interest and other costs to help protect council services for residents.
“Faced with 76% cuts to Government funding at the same time as demand and costs are rising, we are always looking at ways to protect frontline services.
“Investing soundly in commercial property is part of this. Taken together with leasing out areas of the council offices at Bernard Weatherill House, we are now generating over £5 million per year for frontline services.”
Councillor Simon Hall, cabinet member for finance and resources
