DETAILS of a secretive investment in a hotel outside the county will not be divulged until the deal is done, South Somerset District Council has revealed.

A report on the council’s commercial investments and property portfolio came before the authority’s district executive committee on June 6.

The report said the council had acquired a “headlease interest” in a new development including a hotel and retail, which would provide “secure long-term rental income” to fund front-line services in south Somerset.

But officers have refused to divulge the details of the lease, the hotel’s locations, or how much money the council expects to earn from it each year, citing commercial sensitivity.

A “headlease interest” is held directly from the freeholder – the party who owns the property and the land on which it sits.

A spokesperson said: “Due to the commercially sensitive nature of the hotel and retail opportunity, we cannot release details at this stage.

“We can confirm that it is outside Somerset and the investment is a commercial property investment, in line with our approved strategy. As with all investments, the full details will be released when the deal is concluded.

“We are investing in a diverse range of locations and asset types to ensure that it spreads any risks attached to investments, which reflects sound investment practice.

“This includes assessing whether an investment outside the district will deliver a better rate of return for our communities than a similar opportunity in South Somerset.

“We have sustained a 70 per cent reduction in our government grant funding since 2010, and further reductions are likely in the future while demand for and costs of many services continues to rise.

“We need to make the most out of our assets and look for new opportunities which could generate income, to protect the wide range of services our communities receive and create opportunities to fund new projects.”