Bermondsey: Southwark Council to buy three office buildings

The council hasn't yet made public details of the three buildings which are located in Riverside ward and said to be close to London Bridge and Shad Thames.

"This year the total income receivable from the council's commercial property portfolio is £11.65 million," said Cllr Fiona Colley, cabinet member for finance, modernisation and performance.

"This is a vital source of income to support council services.

"However, this income has reduced by £2 million over recent years as a number of sites have been either sold to help finance the capital programme or redeveloped to deliver new council homes.

"An opportunity has arisen to add to our portfolio by purchasing three commercial properties in the borough.

"Having carefully assessed the capital value, income yield, financing costs and risks I am recommending the cabinet approves the purchase of these buildings.

"In this period of decreasing government funding for council services, this capital investment will generate much needed additional income into the general fund revenue budget and help support the delivery of our highly valued public services."

Editor's note: an earlier version of this article identified three buildings. We have been told that these are not the properties the council intends to purchase. The article was updated on Wednesday 22 March.