SOMERSET West and Taunton Council has forked out £8million this month (December) to buy two investment properties.
The council expects the properties in the Leicester and Wakefield areas will bring in almost £500,000 in rent every year.
The premises are both occupied by the Reflex Group, which makes labels, labelling systems, flexible packaging, sleeves and cartons, design and more.
SWT is also looking to buy an undisclosed industrial property due for completion in December next year (2022) for £22.3million.
It had already built up a portfolio of nine properties in locations such as Scotland, Yorkshire, Birmingham and Castle bought between August 2020 and May this year.
They house offices, stores for companies including Wickes, The Range and B&Q and warehouses.
None of the properties listed so far purchased is in Somerset or the wider South West.
The authorities total outlay on investment buildings has now risen to almost £99million, producing an annual rental income of almost £7million.
Having set aside a budget of £100million for the project, the council now looks set to halt its policy of buying up properties to produce a rental income.
The figures are published in an officer report to the council's corporate scrutiny committee, which is meeting on Wednesday, January 5.
The report says: "The total amount of investment to date is £98.965m, representing almost 99per cent of the authorised £100m fund capital budget total, leaving a current balance of £1.053m not yet invested.
"The advice from officers is that this balance is too small to invest in the context of our portfolio balance, risk, and management costs.
"It is therefore recommended by the Investment Board that the initial build of the portfolio is considered complete with no further acquisitions planned."
The report adds: "The implementation of the fund has successfully delivered a balanced property portfolio that meets the parameters set out in the strategy.
"The blended net initial yield for all the assets in the fund is 7.01per cent, which is a significant achievement considering the length of the secured income streams in the portfolio.
"The weighted average unexpired lease term as at the 25 December 2021 is 10.91 years, meaning the income from the portfolio should be much more stable than was anticipated by the original investment strategy."
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