Commercial property investments

Why is the council investing in commercial property?

Like many councils, Norwich City Council is getting less money from the government. To keep important local services running - like parks, libraries, and waste collection - the council needs to find new ways to make money. One way is by investing in commercial properties (like shops, offices, and warehouses) that bring in rental income.

How does it work?

• In the past, the council put its savings in bank accounts to earn interest, but interest rates are now very low.
• Instead, the council buys commercial properties. These properties are rented out to businesses, and the rent helps pay for local services.
• Sometimes, the council uses its own savings to buy these properties (called “internal borrowing”), which saves money on interest payments. Eventually, they may need to borrow money from outside sources to pay themselves back.

How does the council decide what to buy?

• The council works with expert advisers to find the best investments.
• Wey try to buy a mix of properties in different locations and business sectors, so they don’t “put all their eggs in one basket.”
• While we prefer to invest in Norwich, the council sometimes buys properties elsewhere if it makes financial sense.

What has the council bought so far?

Here are some examples of properties the council has purchased:

• the Gym in Ramsgate
• Lloyds Bank in Norwich
• Oakland International in Corby
• Offices and retail spaces in Norwich, Cambridge, Milton Keynes, and more

What’s the goal?

The main aim is to generate extra income to support council services and help Norwich thrive, even as government funding drops.