Hambleton District Council is to launch a commercial investment arm to protect key services.
A £40m on fund will be launched to raise up to £800,000 a year – income that will be needed as government funding comes to an end.
Members of the council’s Cabinet have agreed to set up the investment portfolio which will be supported by an acquisition strategy to guide the type of property to be bought.
For the authority to be self sufficient it needs to find an extra £400,000 by 2021 rising to £800,000 by 2023.
“This portfolio will make a significant contribution to our financial strategy and delivery of services and projects that are important to Hambleton,” said council deputy leader Peter Wilkinson.
“Our initial purchase from this fund is the first phase of the Treadmills development in Northallerton which will see us as landlords to retail units. Going forward we will be looking at industrial, warehousing and office accommodation both inside and outside the district.
“We will look at each purchase closely – although no investment is risk free. But we are looking at this for the good of the district and the protection of our services for years to come.”
Cabinet’s decision will be ratified by full council next month.