Gryllus, the Council’s property investment company, has bought its first property for £3.25m. The property is in Maidstone’s primary shopping area and has been let to Marks & Spencer for the past 30 years. It will generate a net revenue income of £226,000 a year.

Earlier this year, as part of its strategy to become financially self-sufficient, the Council set up a £50m Property Investment Fund to generate additional income to ensure services can continue to be provided in the light of reduced grants from the government.

The fund is being financed by using available capital reserves and through borrowing at low interest rates. The aim is to acquire a balanced, mixed property portfolio, to minimise risk and provide a good return for the Council through rental income and interest charges.  

While the Council can buy properties within the district, any properties outside can only be bought through a council owned company. A separate £20m Development Fund is being used to invest in projects inside the district.    

Councillor Simon Ainsworth, who chairs the Resources Committee, which set up the fund and the company, said: “Today’s news that Gryllus has completed its first purchase is an important first step for the Council in creating a new revenue stream which puts us firmly on the road to becoming financially self-sufficient. I am delighted we are taking every opportunity to secure income to help us achieve our ambitions and sustain our services, taking a path many councils are already using. This is all about making sure we put ourselves in the best position to continue to provide excellent services for our residents and businesses.”