The authority is planning to add to its property portfolio by purchasing Binley Court on Brindle Avenue
An office block in Coventry is set to be snapped up by the council and rented out at a "7.1 per cent return".
Coventry City Council is planning to add to its property portfolio by purchasing Binley Court on Brindle Avenue.
The two-storey, 31,000 sq feet office block is seen as an income-producing investment for the council which could generate money for services.
Plans to buy the property were outlined in a cabinet meeting on Tuesday and received full backing, but details of the cost were revealed in private.
Cabinet member for jobs and regeneration Cllr Jim O'Boyle said the purchase, should it be fully approved at council next week, is a "good deal".
He said at cabinet: "It is an investment opportunity.
"People will ask why the owners are selling it if it is a good investment.
"The answer is the company that bought it wanted to knock it down and develop on it. They are a developer not a landlord.
"We believe we have got a good deal here.
"This does attract something like a 7.1 per cent return on our investment every year, which has to be good."
The site currently has two tenants, both on 10-year leases.
Aptiv Services UK Limited, whose clients include Jaguar Land Rover and Ford, operate the bottom floor, while Orbit Group Limited, a housing provider, operate the first floor.
The site also contained 108 car parking spaces.
Posted: Fri Nov 30, 2018 1:30 pm