Sevenoaks District Council has purchased Suffolk House in Sevenoaks as part of its investment and economic development strategy.
The Council exchanged contracts on the property at 154 High Street yesterday (Monday 23 March 2015) for £4 million.
By purchasing the property, the Council will generate additional income, at an initial yield of 7% a year with potential for growth, while at the same time protecting local office space from development.
The four-story self-contained offices have been fully let to existing tenants for a number of years.
Cllr Peter Fleming, Leader of Sevenoaks District Council, says: “With the purchase of Suffolk House we are not only safeguarding important local office space, we are set to generate a healthy return on our investment, which will benefit our residents. With this latest acquisition we will get a greater rate of return, through existing rents, than we get by investing our money in the bank. This purchase, together with the recent acquisition of the Swanley Working Men’s Club, forms part of our wider strategy to become financially self-sufficient as our support grant from government reduces further in the coming years.”