SEDGEMOOR District Council has just spent £8m buying a high street fashion outlet 92 miles away.
The council agreed in February 2018 to invest up to £50 million in commercial property over the next three years, with the rental income being used to fund front-line services.
The council purchased the Street Retail Park in December 2018 for £8.2m, which includes the village’s Home Bargains and Pets at Homes stores.
It has now revealed its second major investment, purchasing the TKMaxx store on Worcester High Street for £8.05m.
The investment was completed, but was only made public at a full council meeting on Wednesday afternoon (July 31) due to commercial sensitivity.
Cllr Mark Healey, portfolio holder for commercial and asset management, said in his written report: “The prime city centre location of 48-50 High Street, Worcester, accommodating a TKMaxx store, was purchased in April.
“The combined gross rental of both acquisitions well exceeds £1m per annum.
“As of today [July 31] we are actively looking at another opportunity, which if we move forward with would take the spend up to nearly £20m.”
The council has confirmed the annual rent it earns from the TKMaxx store is £565,000.
A spokesman for SDC said: “We have approximately £34m remaining from the £50m which was approved for property investment in 2018.
“We have assumed that we will spend approximately £17m per year, but it depends what opportunities present themselves from the market.”
Elsewhere South Somerset District Council snapped up two units on Dunball Industrial Estate in February for £2.8m.
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