“While local authorities are furiously selling assets to plug gaps in their budgets resulting from central government funding cuts, they have simultaneously been accumulating property assets across the country. Such has been the buying spree that they are now a significant force in the commercial property market. This is largely thanks to cheap finance provided by an arm of the UK Treasury.”…

…”Given local authorities’ limited experience of commercial property investment, the dangers are clear. It is worrying, too, that many appear to enjoy unduly favourable borrowing costs relative to their financial condition…”

Read the full article on the FT website 

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