United Kingdom ViewPoint - Local Authorities: The New Long-Term Investor? June 2017
In this latest Viewpoint, Local Authorities – The New Long-Term Investor, CBRE Research examines how local councils are using long-term debt to invest in long-income commercial real estate in an effort to broaden their income base and increase their financial independence from Government grant.
The volume of such investment increased dramatically in 2016, in 82 purchases worth £1.3bn, probably because of specific changes made by the Government to the local government finance framework. This will likely be a significant source of investment unless the Government changes its policy on this type of lending – which they have said they will not do.