Sutton Council's investment properties generated £3 million in net income during the 2025/26 financial year, contributing to the funding of local services.
The Strategy and Resources Committee received an annual update on the performance of the Council's Investment Property Portfolio (IPP) on Monday, October 5, 2026. The portfolio, which had seen property investments of over £80m made by the end of the 2019/20 financial year, had an asset value of £84,831,000 in 2025/26. The portfolio yielded £3.053 million in net income, despite facing challenges in the commercial property market.
While the overall total return for the IPP was 2.06%, which was below the national average, the effective return on income stood at 3.60%. The report noted an increase in void properties, particularly within the industrial and office sectors.
Cantium House in Wallington is currently under review for its future use, with options being explored for its potential redevelopment or alternative use. The report indicated that two industrial units in the Kimpton Estate have become available, with interest shown but no transactions yet agreed. Additionally, some office space in Cantium House is being considered for short-term use by council partners and other agencies.
The retail sector of the portfolio remained fully let, with the former Wilko unit on Sutton High Street being leased to Lidl. The industrial sector generally performed well, with most properties let on long leases providing security.
Despite the challenges, the IPP continues to provide valuable income to support council services, contributing to the Council's financial stability.
Read the full public reports pack for the Strategy and Resources Committee meeting on October 5, 2026: Public reports pack.