Plymouth Council buys retail park as authorities snap up commercial property

Fri, 11 Nov 2016 | COMMERCIAL PROPERTY

Plymouth City Council has snapped up an 81,000 square foot retail park home to Dunelm and Hobbycraft as part of a strategy to promote the city’s economy and pour cash into vital services.

The investment in Friary Retail Park on Exeter Street, close to a “strategic gateway” to the city centre, was secured using historically low borrowing rates and gives the authority a long-term income stream, it said.

The freehold interest has been sold by AXA Insurance UK plc and AXA PPP Healthcare Ltd.

Plymouth Council has an investment portfolio worth around £80 million, bringing in an average of £6.7 million in rent every year from small shops, retail parks and industrial estates.

The authority is one of many local councils who are investing in commercial property to generate safe, steady income streams. This year, more than £1 billion has been spent on commercial property investments by authorities including Portsmouth City Council, Surrey County Council and Leeds City Council.

Plymouth Council’s leader Ian Bowyer said: “Lots of councils are doing this. As we all get used to diminishing funding from central government, we need to be entrepreneurial and look at other sources of revenue. We are already landlords of a significant amount of commercial property and have a good track record in maximising returns from our property estate.

“Taking over this park will also give some long term certainty for the existing tenants, which is good for their business, good for their staff as well as good for the wider city.”

The council estimates Friary Retail Park will deliver an annual income from rents of over £500,000 a year, growing over time.

“That’s half a million worth of savings we don’t have to make elsewhere and it will help us protect vital frontline services,” Mr Bowyer said.

Find retail businesses for sale.


Share this article



Latest Businesses for Sale

Festival Operator Business
Essex, South East, UK

An excellent opportunity exists to purchase the business and assets of a well-established festival business that has built up a successful annual festival in the South East of England. Offers invited.

Asking Price: £100,000
Turnover: £5,000,000

LEASEHOLD


Commercial Lighting Contractor Business (Fast Sale)
Oxfordshire, South East, UK

A sale will be executed at the earliest opportunity. All expressions of interest must be registered by no later than 22 July 2020. An excellent opportunity exists to purchase the business and assets of a well-established commercial lighting contracto...

Asking Price: £50,000
Turnover: £5,000,000

LEASEHOLD


Telecoms & IT Services Provider
London, UK

An opportunity to acquire a UK-based telecoms and IT multi-layered services provider delivering leading edge services to contracted telecoms partners. Successful model operating for over 17 years, in 3 different countries. Significant professional fr...

Asking Price: Offers Invited
Turnover: £2,700,000


View more businesses for sale

News Search

Latest News

 
10
 
Jul
 

Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...

 
09
 
Jul
 

John Lewis to close eight stores as COVID-19 accelerates shift to online | BUSINESS NEWS

Department store chain John Lewis has said that eight of its...

 
09
 
Jul
 

Chancellor cuts VAT on hospitality as part of £30 billion rescue plan | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion pla...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources