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In memory of His Royal Highness The Duke of Edinburgh

Commercial property investments

Commercial Property Commercial Investment Strategy

As a result of a reduction in Council income streams and increasing volatility around other funding, Somerset West and Taunton (SWT) is required to generate new sources of additional revenue to support front line services.

As part of this process the Council has adopted a strategy of commercial property investment, in accordance with the Council’s latest Medium Term Financial Strategy (MTFS). The MTFS is aligned to the Prudential Code which was developed by the Chartered Institute of Public Finance and Accountancy (CIPFA) as a professional code of practice to support local authorities’ decision making in the areas of capital investment and financing. Authorities are required by regulation to have regard to the Prudential Code.

The Commercial Property Investment Strategy is to invest £100M to create a diversified, cross sector, institutional grade property portfolio which will bring in gross additional income of £7.1M.

The financing of the portfolio will be controlled in accordance with the Council’s wider Treasury Management Strategy.

Properties

730 Waterside Drive, Aztec West, Bristol

Key Facts:

  • Purchased on 28 August 2020 for £9.572M
  • £759,201 Rent Per Annum
  • Fully refurbished building
  • Multi-let to four tenants
  • Secure income from strong tenant covenants
  • On an established business park location on edge of big six city
  • Good car parking ratio

The Range, Halifax

Key Facts:

  • Purchased on 11 September 2020 for £5.445M
  • £418,455 rent per annum
  • Single let retail warehouse
  • Prime town centre location
  • Good car parking ratio
  • Very secure tenant with very low risk

B and Q, Ayr

Key Facts

  • Purchased on 11 November 2020 for £6.6M
  • £520,000 rent per annum
  • Single let retail warehouse
  • Established and dominant out of town retail scheme
  • Good car parking ratio
  • Very secure tenant with very low risk

Wickes Extra, Perry Barr

Key Facts

  • Purchased on 18 December 2020 for £9.25M
  • £733,292 rent per annum
  • Single let retail warehouse
  • Established location with little direct competition
  • Good car parking ratio
  • Strong tenant with very low risk