The city council has bought another multimillion-pound office block in central Brighton.
Brighton and Hove City Council announced this week that it had bought Lyndean House in Queen’s Road for £5.6 million.
The four-storey building, south of the Gloucester Road junction, is occupied by Sainsbury’s Local on the ground and basement floors. Upstairs tenants include communications company 15 Below Ltd, Reason Global Insurance and Sainsbury’s Supermarkets.
Last year, the council spent £6.8 million on Phoenix House in West Street, Brighton.
The council owns a large amount of commercial property around the city and in 2014 a strategy was agreed to sell off underperforming assets – and purchase new ones which offer a higher rate of return.
Since austerity led to huge cuts in the amount of money councils receive from central government, several councils have been investing in commercial property in order to secure new income streams.
Councillor Daniel Yates, lead member for finance and resources, said: “Lyndean House provides much sought-after stable income, allowing the council to continue to bolster our strategic investment within the city and, in turn, be able to continue to provide key services needed to promote Brighton and Hove as a thriving place to live and work.”
In April, the then owners of Lyndean House, Threadneedle Asset Management Ltd, applied for permission to change the usage of the ground and basement floors to retail, as they had been empty for five years.
Within weeks of securing permission, Sainsbury’s was planning on opening its Local store there.
Alasdair Collins, an associate at property agent Knight Frank, said: “We are delighted to have acquired this prime retail and office investment on behalf of Brighton and Hove City Council.
“The city’s healthy demographic drivers underpinning wealth creation and strong occupier demand ensure that it remains a key target for domestic institutional investors.”