Leicester City Council says rent from its property portfolio made up 2 per cent of its annual budget last year.
The council said it generated more than £8 million in 2021-22 from its investments in industrial units, office space, shop units and other commercial land and property. It said the headline figure in a new Corporate Estate Annual Report showed a gross income of £8.34 million (which was £5.86 million net).
The council said the portfolio was spread across different sectors and investment types, which prioritised security over yield to ensure risk was kept as low as possible.
Mayor Peter Soulsby said: “The city council has invested in land and property for generations – and that prudent investment and sound management of the corporate estate portfolio over the years continues to bring benefits to the city today.
“Last year, income from our corporate estate provided a much-needed boost of nearly £6 million to the city’s general fund – which meets the cost of the city’s most valued council tax-funded services including street cleaning, refuse collection, parks, pothole repairs, libraries and community centres.
“As funding from elsewhere diminishes, the income generated by the council’s corporate estate portfolio will become increasingly important.
“Today, the council is still the largest land and property owner in the city and it will continue to invest in land and property as a means to generate sustainable income streams that support our local priorities, our local communities and the local economy.”
The annual report shows that the council’s corporate estate portfolio comprises 378 commercial sites in the city and county, valued at £123 million. Its value was boosted in November 2021 by the purchase of the Haymarket Shopping Centre, whose value – the council said – had since increased by 5 per cent.
The largest single sector within the portfolio is industrial – which includes sites such as the Boston Road units, the Willowbrook Workshops and Freemen’s Common Road. The sector represents a third of the portfolio, and is valued at £41 million. It generated an income of £2.45 million for the council in 2021/22.
The retail sector represents 30 per cent of the portfolio, with a third of the shop units owned by the council located in neighbourhoods, while office space represents 21 per cent of the corporate estate portfolio.
Areas outside these three core sectors – including farmland, grazing areas, car parks, advertising hoardings and even a former pub – represent 16 per cent of the portfolio. Revenue from them was £2.1 million in 2021/22.
