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Report claims Lichfield District Council’s £45m property investment plan could generate £900,000 profit

A report claims Lichfield District Council’s £45million property investment plan could create a profit of £900,000 within five years.

Lichfield District Council House
Lichfield District Council House

The local authority confirmed the introduction of a Property Investment Strategy in 2018.

Former leader Cllr Mike Wilcox said at the time that the plans would help fill the funding gap as well as tackle issues around affordable housing.

Now a report to the strategic asset management committee says the council is nearly ready to begin buying up properties.

“The council is almost in a position to begin to seriously consider available property and acquire property where the opportunity passes our due diligence checks,” he said.

“The council will make available £45million over the coming four years and could generate a gross profit of over £900,000 by the financial year 2023/24.”

The report will be discussed at a meeting of the committee tomorrow (11th June).

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8 Comments

  1. Dave

    10th June, 2019 at 12:57 pm

    2% Gross – hardly a return!!!

  2. John Griffin

    10th June, 2019 at 10:18 pm

    Counting on ignorance. Better return spent on development in Burntwood

  3. Philip Allso

    11th June, 2019 at 9:23 am

    If the figures are correct this would be as poor an investment as Friarsgate would have been / has been. The ‘gross profit’ after four years would be subject to tax, management fees and maintenance costs. Not much left in the kitty after that. There is also the potential for capital loss as commercial buildings are a questional investment in the present climate. As an individual you might take the chance. Corporate finance has to be viewed more conservatively.

  4. Dave

    11th June, 2019 at 10:37 am

    I suspect completing the Friarsgate development would have been a much better home for this investment. Although the attractive bomb site wouldn’t then be the gateway to the city for visitors!!

  5. Adam

    11th June, 2019 at 5:35 pm

    Walsall Council purchased the Saddlers Centre shopping centre; it’s quite literally half empty now.

  6. Steve

    11th June, 2019 at 7:42 pm

    https://lichfieldlive.co.uk/2018/11/13/lichfield-district-councils-new-property-investment-strategy-to-cost-3million-over-the-next-year/

    Has Mr Wilcox already spent £3 million as planned on this project?

    I love the use of the word, could. Normally followed by unforseen costs, difficult trading condtions, consultants fees…….

  7. Darryl Godden

    11th June, 2019 at 9:25 pm

    Wilcox, the reverse King Midas, strikes again.

  8. Ritesh Narshi

    12th June, 2019 at 12:03 am

    That’s an incredibly poor return on capital.

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