South Hams increases limit for commercial property
0South Hams District Council has approved raising the limit for its borrowing to invest in commercial property from £30m to £60m.
The increase will take effect from April 2019.
No investment decisions have yet been taken, though the council has a number of target properties under consideration.
South Hams is the latest council to raise its exposure to commercial property.
Redditch Borough Council said at the end of January in its Capital Strategy 2019/29 that it would begin to invest in the sector, putting in £20m over the next three financial years.
Uttlesford District Council also announced at the end of last month that financial pressures were forcing it into £100m of borrowing, much of it for investment in commercial property to provide revenue to help plug a deficit projected to reach £3.5m by 2023/24.
South Hams’ £60m property budget compares with the council’s limit for all other borrowing of £15m, and a net budget for 2018/18 of £8.98m.
