The proposal to be considered at next Tuesday’s Cabinet, is to use capital funding to purchase the long-lease on the building (the freehold of which is already owned by the Authority).
Two reasons are cited for such a move. (i) It enhances the Council’s current revenue income as this would attract a 7% net annual rental return as opposed to 0.6% interest on short term cash deposits. (ii) This also increases the ‘strategic influence over a key redevelopment site with the Bristol Temple Quarter Enterprise Zone (BTQEZ).’
Now, Cllr Lucas, the Conservative Mayoral Candidate is keen for the Mayor to grasp this income-generating commercial opportunity.
Cllr Lucas said: “This is a genuinely exciting investment opportunity and really good news for local taxpayers.
“Whilst precise details surrounding the purchase of ‘Citypoint’ remain commercially sensitive, even a basic grasp of maths during these times of persistent, historically low interest rates, dictate that this is an eminently sensible use of Council resources.
“The importance of the Temple Quarter Enterprise Zone can only increase moving forward, and this in itself should enable Bristol City Council to command top-notch, premium rental income from this building.
“This is just the sort of thing – thought through capital expenditure – we should be looking at and exploring to help drive the local economy and maximise return on the Council’s commercial property portfolio.”