EAST Hampshire District Council (EHDC) says its property plan is paying off after taking on a new piece of real estate in Petersfield to add to a growing portfolio.

With interest rates at a record low and cash investments offering a poor return, the council decided to invest in the district’s bricks and mortar.

Since announcing the strategy in 2013, EHDC has seen its property portfolio recoup hundreds of thousands of pounds more than the equivalent investments in savings accounts, which supports the council’s plans to keep council tax low.

The council has now bought five properties – Barclays Bank in Petersfield, the Co-Op in Four Marks, the services on the A3 at Liphook, Sheridan House in Winchester, and now New Barn in Petersfield.

These sought-after and secure tenancies generate around £759,000 in rent every year, around £650,000 more than could be gained through interest on cash savings.

District council deputy leader Richard Millard said: “With government grants dwindling every year councils must find other ways to keep the money coming in to sustain quality public services.

“We are determined to maintain our services to a high standard and keep council tax low. To do that we must make the most of our resources. Property investment brings better returns than cash and it’s clear our strategy to focus on high-quality, commercially-attractive properties is paying off.”

New Barn is a modern office premises on Petersfield’s Bedford Road industrial park.