Work has started on a new retail park that will bring in up to £1m per year for Portsmouth City Council services.
The council has agreed to buy Portsmouth Retail Park, in North Harbour, which will be completed next Spring.
Leader of the council Cllr Donna Jones said: "We are delighted to have found the right property investment in Portsmouth - one that can boost our property investment portfolio by bringing in more money for the local services that are most important to local people while boosting jobs and the local economy at the same time.
"This investment is about making money to pay for council services and creating jobs for our residents. This deal alone will generate up to £1m for local services which will make a real difference at a time when councils continue to face cuts to the funding we receive from the government.
"It's fantastic that work has started on Portsmouth Retail Park and we can't wait to see this development thriving and bringing in rental income for the people of Portsmouth."
The brand new £16.2m development will include eight retail and food outlets and a gym on empty land next to Tesco Extra in Southampton Road.
The first nine tenants are expected to be:
- Pure Gym
- Home Bargains
- Jollyes pet superstore
- Explore Learning
- Quality Pet Care
The development will be built by property solutions business Simons Group.
Simons Group chief executive Tom Robinson said the new development will enhance what is already a great city. “It’s an exciting project for Simons Group and one which will bring further vitality to Portsmouth," Tom added.
The Portsmouth Retail Park investment will be added to the council's expanding property investment portfolio which already includes ten commercial assets, generating £4.3m of profit per year, for things like: libraries (£1.96m annual cost), museums (£759,900), weekly rubbish collections (£3.2m), community wardens (£148,800), homelessness services (£615,900) and school crossing patrols (£198,000).
Ninety per cent of this year's budget savings have been achieved by generating new income and restructuring debt.
More property purchases are set to be made in the coming months generating even more money for local services.
For more information about the council's property investment strategy click here, search 'property investment strategy' on the council's website or call 023 9283 4954.