TOWN councillors in Barnard Castle are considering investing tens of thousands of pounds in property.
The town council has about £125,000 of reserve funds.
While some of that is earmarked for specific areas of its work, the council keeps about £70,000 in a general reserve fund.
Members invited Mark Davis, a representative of CCLA Investment Management, to give a presentation at a specially convened full council meeting last week.
Mr Davis explained that CCLA manages investments for charities, religious groups and the public sector, but not personal clients.
He said that while the property fund had been around since 1972, it was only in 2013 that CCLA had decided to go back to the market and see if clients wished to put money into it.
Initially, the property fund attracted 12 clients and £80million and that had grown to 210 clients – including 80 parish and town councils – and £940million.
“Those councils have decided to take some of their resources and take a long term view,” he said.
He told councillors the minimum investment was £25,000. It was recommended to to keep any investment in the fund for at least five years.
Mr Davis said the money was invested in a variety of property, including retail warehouses, industrial buildings, such as logistics centres, and offices around the UK.
He said CCLA did not as a rule invest in shops, but did own buildings which were leased long term to the Travelodge hotel company.
Due to the uncertainties of Brexit, Mr Davis said income from rents “has to be the focus” .
He added: “Capital growth – we don’t know what it’s going to do.”
Members were told nearby Darlington Borough Council had £10million invested in the fund. Town clerk Michael King said: “We would be able to invest £25,000 – or maybe a bit more – with suitable advice. We are getting very little on our deposit in Barclays.”
Mr Davis also gave details of a cash fund offered by CCLA which has attracted investment from the likes of Ferryhill, Spennymoor and Greater Aycliffe councils.
Launched in 2011, he said it was “low risk, easy access” and not about long term investment.
“We are placing cash in this fund with 30 different banks and spreading the risk far wider than you could as an individual council,” said Mr Davis.
“More councils are using it for their day-to-day cash flow.”
It was agreed that Mr King would investigate further and report back to the town council’s resources committee.
