SOMERSET West and Taunton Council has spent almost £100million in a 16-month property spree, according to a report to councillors.

A full council meeting tomorrow (Tuesday, July 5) will hear the authority invested £98,965,000 on 12 investments between August 2020 and last December.

The portfolio is earning SWT £6,939,300 in annual rental income.

The most recent purchase in Stoke-on-Trent was the most expensive at £22,272,000, bringing in £1,342,800 a year in rent from the occupant, Steelite International Ltd.

In the same month (December 2021), the council spent a further £8millioon snapping up properties in Leicester and Wakefield, both occupied by the Reflex Group, which makes labels, labelling systems, flexible packaging, sleeves and cartons, design and more.

SWT had previously built up a stable of properties in locations such as Scotland, Yorkshire, Birmingham and Cardiff bought between August 2020 and May 2021.

They house offices, stores for companies including Wickes, The Range and B&Q and warehouses.

None of the properties purchased is in Somerset or the wider South West.

SWT property investments

SWT property investments

 

The investment scheme is currently on hold as it is deemed to have delivered "a balanced property portfolio that meets the parameters set out in the strategy".

The Commercial Property Investment Strategy was approved by the council in December 2019.

The report says: "Despite the challenging economic conditions facing UK businesses and the economy, the performance of the portfolio has been very strong.

"To date there have been no rental defaults."

There have been no disposals of any of the investments to date and none are pending.

Officers are aware of a number of issues they are studying closely.

They include:

part of the first floor of the office block in Almonsbury is vacant. Although the rent is covered by the vendor until next month, SWT is looking to attract new tenants.

Wickes Extra is expected to reduce its footprint by 50 per cent of the Birmingham site when its lease expires in 2027. Aldi and Lidl have both shown an interest in taking on the vacated section of the premises.

the council hopes to increase Audi's lease in Cardiff from three years and seven months.

alternative quotes are being looked into after Steelite queried a 37 per cent increase in insurance premiums at the Stoke-on-Trent site.