Croydon Council has completed the purchase of another freehold site in the borough to provide additional income for frontline services.
The council has purchased the Colonnades Retail and Leisure Park on the Purley Way. The site currently has nine units, with an additional three being constructed to further enhance the facilities.
The purchase is in two phases; the first will be for the nine existing units and the second, anticipated in May 2019, when the three additional units are completed and are generating income. The initial sale will include an obligation for the council to purchase the second phase of the estate development.
A combined purchase price of £53million has been agreed. Additional income-generating opportunities have been identified that could further enhance the value of the asset.
It is anticipated the purchase will provide an annual income of around £1.4m, net of interest and other costs. This will help to protect local services for residents. It is the first purchase since a £100m fund was approved as part of the Asset Investment Strategy signed off by the council last month.
It is proposed the existing companies providing estate and asset management services for the estate will be retained and help develop further opportunities within the portfolio.
“We’re investing in our borough, for our borough.
“This is a solid investment on a well-performing asset, enabling us to bring in additional income to fund core services.
“As government grant funding for local authorities remains uncertain, we’re doing what we can to ensure we can provide services our residents expect and deserve.”
Councillor Simon Hall, cabinet member for finance and resources