COUNCIL Tax in Monmouthshire may be surprised to learn they are the new owners of a £21m city leisure park, hosting a 13-screen cinema complex, adventure park and restaurants.

Monmouthshire County Council confirmed the purchase of the 11-acre Newport Leisure Park on Monday (March 11) as a “commercial investment” asset.

The leader of the Conservative-led local authority, Cllr Peter Fox (Con, Portskewett), sought to reassure Council Tax payers by saying “no cash” had been taken from services, and the money borrowed at preferential rates would generate “significant” rental income to fund future services, “at minimal risk”.

The move follows the council’s £7m purchase of Castlegate Business and Science Park in Caldicot last year, and is part of a trend of local authorities making multi-million pound investments in a bid to create revenue.

Last November, the Forest of Dean Council followed suit by borrowing £1.5m to buy the Lakeside Industrial Estate in Witney, Oxfordshire.

Cllr Fox defended the freehold purchase of the leisure park from Otium Real Estate, saying the investment would generate some £750,000 a year profit in rent.

“This has all been costed with a huge amount of due diligence and will generate around £0.75m a year in income after all costs are paid, possibly even more in future, which will go back into council coffers for the benefit of residents,” he said.

Austerity had left councils cash-strapped, and authorities across the country were having to look at innovative ways of securing funding, added Cllr Fox, with the leisure park investment a prime example of a forward-thinking council securing future services.

Newport Leisure Park is linked to Newport Retail Park on Spytty Road, and the council says it is ‘fully let”, hosting a 13-screen Cineworld cinema, an xercise4less gym, a Home Bargains superstore, an Energi Adventure park and popular restaurants such as McDonalds, Burger King, Pizza Hut and Harvester, with 705 free parking spaces. 

Cllr Fox said: “The council has created an investment portfolio to acquire acquisitions which will deliver financial benefit to the council.

“Times are hard, but the income flow from this purchase will give us a significant revenue stream every year, at minimum risk.

“It’s not our money – it’s been borrowed, which is what many councils are now doing across the country. It’s not out of our coffers, this is self-servicing. We’ll have a revenue return, it’s not stealing from other services.

“We’ve got to be more innovative, because we have been starved of money. Monmouthshire Council is being progressive on this, like many other councils.

“We have to think in a more commercial way. Services would be under threat if we didn’t find new ways of generating revenue.

“It’s not speculating. The investment portfolio is backed by the full council and this purchase has undergone a huge amount of due dligence to ensure it will deliver a significant return and benefits to the council.”

Paul Matthews, Monmouthshire Council chief executive officer, said: “We are pleased to have secured a well-let, long income asset that will provide an excellent annual return for the council and help us to sustain our wider service delivery portfolio in the years ahead. 

“Newport Leisure Park serves a large catchment area in South Wales and taps into the long-term demand for experiential consumer spend and leisure activities. It is the latest addition to our commercial investment portfolio following our recent acquisition of Castlegate Business and Science Park.”

Large amounts of new housing are being developed in the surrounding area which is close to a potential new route for the planned M4 link road.

Ashley Blake, chief executive of Otium Real Estate, said: “We have invested heavily into Newport Leisure Park since acquiring it in 2015.  

“Five new tenants have joined the offer, the park has been refurbished and existing tenants have enhanced their fit-outs. 

“We are delighted that Monmouthshire County Council has had the foresight to acquire this asset and that the South Wales area will continue to benefit from this long-term, secure investment following our work to regenerate the park.”