Council buys Bury St Edmunds warehouse in £4 million deal
A council has bought a warehouse in a £4 million deal to generate income and deliver on long term ambitions to develop future phases of a ‘public service village’.
St Edmundsbury Borough Council has purchased the 3.26 acre building, in Olding Road, Bury St Edmunds, which is used by DHL Supply Chain Ltd to run NHS Logistic operations for East Anglia.
The company recently signed a five year lease on the warehouse and the acquisition follows the announcement that the council plans to buy Bury’s former Crown Post Office building for £1.6 million.
Cllr John Griffiths, leader of the council, said: “This is another example of the council behaving strategically and commercially to secure a property that is both a sound investment, generating income which will help support the delivery of day to day services and in the long term should drive growth, efficiencies and jobs in the area.”
Cllr Griffiths said the warehouse was the ‘only missing piece on the Monopoly board of properties and land’ the council already owns and controls in the area.
He added: “DHL remain tenants of the building and we will continue to work with them to assist them in the future.
The site is included in the council’s masterplan for the Western Way area to develop future phases of its ‘public service village’ to bring public sector organisations together.
A revised version of the masterplan was approved last year and included ambitions for a 1,800 space multi-storey car park and accommodation for students at West Suffolk College.
Cllr Alaric Pugh, cabinet member for planning and growth, said: “In the longer term, this gives us the flexibility, the opportunity and the control to deliver on our long held ambitions set out in the Western Way Masterplan - ambitions that are about achieving a greater co-ordination of services with other public sector organisations and with it the opportunity for us all to think about how we can innovate to deliver these services more effectively.”
When asked about specific plans for the DHL site, a council spokesman said ‘nothing is designated as such yet’ and the masterplan is the ‘visioning work on how public sector organisations could come together’.