TWO prime industrial units have been snapped up for £200,000 below the asking price by South Somerset District Council.

South Somerset District Council, which covers Yeovil, Chard, Ilminster and Crewkerne, purchased Units 1 & 2 on the Dunball Industrial Estate for £2.8m, bragging in a press statement this week that this was 'well below the marketed value of £3.025m'.

The building provides 36,050 square feet of flexible industrial accommodation and has been tenanted by Trelleborg Sealing Solutions since its construction in 1983.

The purchase was completed in January this year and was assisted by Bristol based investment specialists, Alder King.

A South Somerset District Council spokesman said: "There is development potential to the north of the site and with the development of Hinkley C, there will be an increasing demand for industrial property in the area, which the property is well positioned to benefit from."

Cllr Henry Hobhouse, portfolio holder for property at South Somerset District Council, added: “This property meets our aim of acquiring well located property with established tenants, where we can add value.

"We were able to acquire the property with a 7.51 per cent net initial yield and with very little industrial property in the market in excess of seven per cent, I’m pleased that we have been able to acquire so well in Bridgwater.”

SSDC joins councils across the country in looking to become 'more commercial' in the wake of drastic government grants reductions combine with increased demands and costs for providing services.

The council spokesman added: "It became clear SSDC needed to make the most of its assets and look for new opportunities which could generate income."