Council buys local commercial complex to generate income for front-line services
7 January 2019
Southwark Council has confirmed the recent acquisition of Courage Yard, an office, retail and residential square next to Shad Thames, close to Tower Bridge and just a stone’s throw from Potters Field Park and the council’s own headquarters on Tooley Street.
The property, which was on the market at £89m, is made up of seven buildings, one of which serves as the headquarters for global tech company ZPG Ltd. The council uses a variety of sources to maintain the value of the portfolio and its returns through recycled capital receipts, internal borrowing and, where appropriate, external borrowing from the Public Works Loans Board; this will continue to be the case for Courage Yard. The investment will generate around £5m per year in revenue, which the council will put towards vital services.
Cllr Victoria Mills, cabinet member for finance, performance and Brexit, said: “Income we receive from our commercial property portfolio is essential to help support our highly valued public services in this time of decreasing government funding.
“Over the years we have acquired commercial assets that we can manage to generate revenue. Projects are chosen based on being in Southwark and the size and resilience of their revenue return, which can then be used to support our frontline services.
“Over recent years a number of properties the council owns have been sold to help finance our substantial capital programme or we have developed them to deliver new council housing. This has reduced our income from commercial assets.
“During 2017 we purchased four properties in the borough with an established rental income of over £2.18million a year and we believe that Courage Yard will be another valuable asset for the council.”
Page last updated: 07 January 2019