Chorley Council has bought a 300,000 sq ft warehouse at Revolution Park for £33m, in a sale-and-leaseback deal with tenant TVS Supply Chain Solutions.
The purchase forms part of what the council said is a revenue-generating plan in the face of Government cuts.
Logistics House off Buckshaw Avenue has been occupied by TVS since 2006, with more than 300 staff based in the site. TVS has signed a 15-year lease.
The council said it would make £400,000 each year from the warehouse, rising to £1m over the course of the lease period.
Leader of Chorley Council, Cllr Alistair Bradley, said: “With the huge cuts in government grant we have seen over the years if we are to continue to improve services for residents we have to generate our own income from commercial ventures particularly where that also supports our commercial sector and protects jobs.
“This deal came about in a similar way to the purchase of Market Walk, which has been a fantastic move for Chorley, with the imminent opening of the extension that will bring more visitors into the borough.
“As with any deal like this there is always an element of risk but we’re comfortable that it is an opportunity that we couldn’t turn down and it was supported by councillors of all parties who recognised the benefits to all residents of our borough.”
“The success of projects like Market Walk, which generates £1m per year, means we have been able to keep council tax rises to a minimum and we’ve been able to make investment in major projects across the borough, such as the Croston flood relief scheme, which has recently saved hundreds of homes from flooding in the recent bad weather.”
Knight Frank is understood to have acted for TVS, while Gerald Eve acted for the council.