Wyre Forest District Council buys business units
A council has purchased Brinton House in Kidderminster, which includes four units in the Riverside location, as part of its Capital Portfolio Fund.
Wyre Forest District Council has purchased the premises as part of its proactive approach to supporting the local economy and to ensure there is a variety of businesses within the town to make it an attractive place to visit.
The net rental income for the Riverside units Coffee#1, Veenos, Bistrot Pierre and Tapetto Lounge will go towards providing services to residents across the district.
The council has paid £2.4 million for the property including the main Grade II-listed Brinton House, which is let as offices on a long leasehold. The property will produce an estimated net annual rental income for the council of an average of £54,000 over the next 10 years.
Like all councils in the country, Wyre Forest District Council must find new funding streams to replace central Government grants which will stop in 2020. The district council faces a funding gap and must create new income, looking for more efficient ways of delivering services and purchasing property with money that it can borrow at low rates.
Money used to buy property cannot be spent on running services, but income from rents and leases can be.
Mike Parker, corporate director for economic prosperity and place at Wyre Forest District Council, said: “I’m delighted that we have been able to acquire this asset in this prime Kidderminster town centre location.
“It demonstrates the council’s continuing support for its principal town centre and follows improvements to the public realm in Vicar Street and High Street and currently in Worcester Street.
“In addition, With the Government’s revenue support grant disappearing we must find new ways to fund local services for residents.”
