Epsom & Ewell Borough Council has announced its first purchase through its new commercial property acquisition fund - the procurement of 70 East Street; a high quality, refurbished four storey 16,454 sq ft office building in the heart of Epsom.
The Revenue Support Grant (RSG) provided to Epsom & Ewell Borough Council by central Government will be withdrawn completely in 2017-18 and the Council is therefore having to find innovative ways to fund services by creating new revenue streams.
At an extraordinary Council Meeting on 21 November 2016, councillors agreed to establish a £20m property acquisition fund. The fund will be financed by loans at a very competitive rate of interest from the Public Works Loans Board (PWLB) - this is a completely separate borrowing facility from other Council finances and will not divert funds away from any other part of the Council.
70 East Street is let in its entirety to Epsom & St Helier University Hospitals NHS Trust and provides the Council with a secure net income from an established tenant.
Councillor Eber Kington, Chairman of the Council’s Strategy and Resources Committee, comments:
“Securing the Council’s financial stability is one of our highest priorities and I am confident that this is a very sound investment, providing the Council with an immediate net income
“Securing the Council’s financial stability, following the Government’s decision to cut the RSG, is one of our highest priorities and I am confident that this is a very sound investment, providing the Council with an immediate net income
“While we are not the only Council who are investing in property in this way, we have decided that we will be investing only within our borough, a reflection of our confidence in the borough’s business sector and the strength of the local economy”.
Information from Epsom & Ewell Borough Council
