A SOMERSET council has invested £4.2 million in a commercial premises in Devon - the latest in a string of big-money buys.

South Somerset District Council has invested in Centurion Mill, near Exeter, which is currently home to a fireplace manufacturer, an electricity distributor and a Gregg’s bakery.

The council says the investment is part of a commercial strategy aiming to 'invest in a diverse range of assets and generate income which will mitigate a reduction in central Government funding'.

The property comprises two industrial buildings totalling 72,246 square feet on the well-established Sowton Industrial Estate, between the M5 and Exeter’s city centre and is predicted to deliver a net initial yield of 7 per cent.

READ MORE: South Somerset District Council buys the home of Glastonbury B&Q store
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The principal tenant is Stovax Heating Group Limited, who are headquartered on the estate and use this unit in combination with three units immediately to the north as their main distribution centre.

Portfolio holder for economic development including commercial strategy at SSDC, John Clark, said: “With a premium location, established tenants and great value-adding potential, this property provides an excellent opportunity for us.

"We are delighted to get such a strong investment in the competitive industrial market at a yield of 7 per cent.

"We are confident in their intention of the tenants to continue occupation for the foreseeable future."

The investment comes after the council spent money buying the Hasbro distribution hub and the site which is home to the Glastonbury branch of B&Q.