New Investment for Mole Valley District Council
Mole Valley District Council (MVDC) is committed to generating income through its Asset Investment Strategy to support the delivery of services to residents and businesses across the District. As part of this income generation strategy, MVDC recently purchased the freehold of the Quadrangle office building in Redhill for £22.27 million (including acquisition costs).
Councillor Simon Edge, Cabinet Member for Assets and Investments said, "By 2020, further reductions in Government funding may mean that MVDC needs to become entirely self-funding. Investing carefully in commercial property is a key strategy to generate income to support our services. Owning and operating commercial property is not new to Mole Valley District Council and we have a sound Asset Investment Strategy that governs the quality of assets in which we invest.
"We are delighted that we have found an asset that meets the criteria of our Asset Investment Strategy. The Quadrangle comprises an office building which has recently been comprehensively refurbished and is fully let to AXA Assistance UK Ltd providing a regular rental income of £1.23 million per annum. This property is within, the 'Gatwick Diamond', and represents further investment in our wider economic area.
"Councils across the country have been looking at ways of becoming more commercial and property investment is a long term, stable option. This purchase and others in or out of the District had to meet robust criteria before being considered and is subject to a robust due diligence process and independent professional valuation, to ensure it will provide income to spend on services."
For more information on Mole Valley's Investment strategy please see - www.molevalley.gov.uk/propertyinvestment