Mid Suffolk to invest extra £25m in property
0Mid Suffolk District Council is set to increase its share in a property investment company.
The council, which owns CIFCO Capital Ltd with Babergh District Council, is to invest an additional £25m by the end of the 2020/21 financial year funded from borrowing.
Both councils have already invested £25m as part of a strategy to diversify their funds.
The commercial property vehicle has acquired six assets, generating a total of £1,410,466 in annual rental income.
The investment plan has made the two councils equal investors through two holding companies that CIFCO reports back to.
The next step will be for Babergh District Council to confirm its investment.
Suffolk is currently modelling the full risk and returns from CIFCO.
A report to councillors said: “As this activity is subject to both interest rate and tenant void risks a separate stress test is being undertaken and will be available for the Council meeting in February.”
