Babergh & Mid Suffolk's property company generates £6million profit
- Credit: Sarah Lucy Brown
Babergh and Mid Suffolk's property company CIFCO made a £6million profit last year, generating £3.75 million for the councils to put back into services.
CIFCO Capital Limited was established jointly by Babergh and Mid Suffolk in 2017 and has a portfolio including 21 properties, across the industrial, retail and office sectors in the eastern region and beyond.
According to a report going to the council's joint overview and scrutiny committee next week, the draft accounts for 2021/22 also show a £10m increase in the value of the company's portfolio of properties, which is £3m above their original net purchase price.
Babergh District Council cabinet member for assets and investments, councillor David Busby said: “CIFCO continues to generate money for the councils – providing steady and much needed income for the benefit of both councils and our residents.
“Our communities are facing a cost-of-living crisis and need our services and help now more than ever.
"CIFCO is bringing in millions to help us deliver our services without reductions or cuts, and without putting any further financial burden on our residents."
Despite the Covid pandemic, CIFCO collected a higher proportion of rent from their tenants than the current industry average.
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Although there is some uncertainty in the office sector, several vacant units in the portfolio have already been re-let.
The board says its focus for the coming year will be on increasing rental income, and further improvements to properties within the portfolio, including carbon reduction and energy-saving measures.
Mid Suffolk District Council cabinet member for assets and investments, councillor Peter Gould said: “It’s great to see CIFCO bringing in valuable, regular income to the council which, in turn, helps us to support our residents – enabling us to invest in local regeneration, economic growth and community support.
"As well as generating net income now, these properties also provide a legacy for future generations, and I am delighted to see the investment that CIFCO is now starting to make in environmental improvements to the portfolio.”
Projects in the portfolio include a £460,000 refurbishment of units in an industrial estate in Harlow.