Sutton Council could rake in up to £575,000 a year after taking full control of a Wallington office building.

The council currently owns Cantium House in Railway Approach, and will now acquire the "head lease interest" in the site creating the opportunity to collect greater rental income.

The decision was passed on Monday, February 9, at a meeting of Sutton Council's strategy and resources committee.

Councillor Simon Wales, lead member for resources, said: "This is a smart decision to make a strategic and prudent investment at a time when the return from bank interest rates is low. 

"Making the most of every penny is absolutely crucial when there are unprecedented cuts to council funding by central government combined with increased pressure on services.

"The council is here for the long term and is therefore well-placed to take advantage of an opportunity to generate an excellent financial return. The investment will also help sustain valuable office space in the borough to support the local economy."

The decision to fully take over the five storey, 30,000 sq ft, office space, comes as part of a decision to "optimise" its housing portfolio.

The return on the investment (ROI) is estimated to be about 8 per cent although the council has declined to reveal its outlay due to "commercial sensitivities".

According to the council's published report the building is fully let out, spread across nice occupational leases of varying lengths between five and ten years, with some having tenant break options.