Member Article

Sutton Council invests in office building set to generate £575k per year

Sutton Council is set to invest in an office complex in Wallington in order to generate a steady future income for the borough that is significantly higher than bank interest rates.

The council is set to conclude negotiations to buy the long lease for Cantium House, Railway Approach, Wallington, as part of plans to optimise its investment portfolio.

The complex is a five storey building providing over 30,000 sq ft of office space located immediately adjacent to Wallington Railway Station with car park space for 40 vehicles.

The council already owns the freehold of the property which is fully let. It will generate an income for the council of up to £575k.

The return is about 8% which is significantly more than bank interest rates and the money will be used to directly fund council services.

On Monday, the Strategy Resources committee unanimously voted to go ahead with the purchase. Due to commercial sensitivities, the council cannot reveal the purchase price at the present time.

Cllr Simon Wales, Lead Member for Resources, said: “This is a smart decision to make a strategic and prudent investment at a time when the return from bank interest rates is low. Making the most of every penny is absolutely crucial when there are unprecedented cuts to council funding by central government combined with increased pressure on services.

“The council is here for the long term and is therefore well-placed to take advantage of an opportunity to generate an excellent financial return. The investment will also help sustain valuable office space in the borough to support the local economy.”

This was posted in Bdaily's Members' News section by Ellen Forster .