Laura Sharman 12 December 2016

Wightlink ferry deal to generate £2m a year for council

An innovative new finance deal is expected to generate millions of pounds for Portsmouth City Council.

The council has signed a sale and leaseback agreement on the Wightlink Isle of Wight ferry terminal with international insurance company Canada Life.

The deal will enable the council to retain freehold ownership and control of the site, while generating income of at least £2m a year.

The council's property and investment manager, Tom Southall, said: ‘The deal we have signed with Canada Life will have no impact whatsoever on the service Wightlink provides.

'What it will do though is to allow us to use the capital we receive from Canada Life to invest through our property investment strategy, generating at least an extra £2m per year.

‘This deal has enabled us to more than double the amount of money we receive by way of rent from Wightlink annually.’

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