West Lindsey District Council has purchased a second property in the district as part of its investment strategy.
The new acquisition is located at Unit 1 Heaton Street in Gainsborough town centre.
The property cost £1.1 million and brings the council’s investment portfolio to a total spend of £15.1million.
Leader of the council, Coun Jeff Summers has confirmed there will be more property purchases in the coming months to support local services.
He said: “I am pleased to announce that we have purchased another property in our district as per our agreed Investment Strategy.
“The latest purchase, which is in Gainsborough, has passed our stringent, 14-point scoring criteria, giving us confidence it was the right move.
“All our investments, whether inside or outside the district, will ultimately support services and be put back into the economic regeneration and growth of our district. We’re trying to generate the best possible return for our residents’ and will therefore consider investing in opportunities wherever they arise.
“The council has sound financial and legal knowledge and great care is made on each of the investments we make.”
Since the launch of the investment strategy, WLDC has made five property purchases - Bradford Road, Keighley property, which is sub-let to Travelodge; 43 Penistone Road, Sheffield, let to Greenwich Leisure Ltd; Unit 7 Drake House, Sheffield, let to Panache Lingerie Ltd; Unit 5 Sanders Road, Gainsborough, let to Coveris Flexibles (Gainsborough) Ltd, and the Heaton Street property, which is let to W Boyes & Co Limited.
Ian Knowles, Executive Director of Resources at WLDC, said they were not alone in their approach to investment opportunities, with councils nationwide faced with continued reduction in grants from central government; it is anticipated these will be reduced to nil by 2020.
Grant funding to West Lindsey District Council has reduced by £4million since 2012.
Mr Knowles added: “Our investment strategy was approved by the council’s Corporate Policy and Resources Committee in April 2017.
“Our latest acquisition is part of a portfolio of investments which will generate income from rent and future resale to support services, economic regeneration and growth.”
As part of the acquisition process, the council follows a 14-point scoring criteria that ensures it considers all issues, i.e. the condition of the property, tenant financial standings, yield return and proximity to the district.
A spokesman clarified the council receives a market rental for the properties and is in no way involved in the individual businesses operating from the properties.