CIFCO portfolio nears completion
Property investment company CIFCO Capital Ltd is set to increase the £1.5m it has already ploughed back into council services so far this year – with the purchase of a Coventry trade park.
The Pilot Trade Centre in Coventry – bought for £5.54m– is the 19th property to be added to CIFCO’s portfolio and is set to bring in approximately £300k a year in rent.
CIFCO was established jointly by Babergh and Mid Suffolk Councils in 2017 to generate income through property investment to offset reductions in funding from central Government.
The returns received from CIFCO then meet the councils’ loan repayments, with extra income on top ploughed back into council services.
Since its launch, CIFCO has brought in £4.5m of net income to the councils, £1.5m of that the first three quarters of this year alone, at a time when the coronavirus pandemic has significantly affected other ‘traditional’ income streams.
Babergh District Council leader Cllr John Ward said: “The income that CIFCO provides is helping us to weather this global crisis and continue to provide the essential services residents rely upon.
“Our draft budget for 2021-22 reflects some of the difficult decisions we face, but without the income we receive from CIFCO, we would be in a far worse position.”
Mid Suffolk District Council leader Cllr Suzie Morley said: “The virus has affected almost every business, but it is testament to CIFCO’s careful risk management and expertise in balancing its portfolio, that rent collection levels remain above industry averages and repayments continue to be made in full.
“The income from CIFCO’s completed portfolio will be invaluable in supporting the district’s post-Covid recovery, while its portfolio provides a legacy of properties for the benefit of residents for years to come.”
The remainder of the £100m investment agreed by councillors (approximately £15m) is due to be completed in coming weeks.
You can find out more about CIFCO and its portfolio at cifcocapital.com