Chorley Council is now the owner of one of the region’s major distribution sites that will helpprovide a significant source of income for the authority.

The 300,000 sq ft distribution warehouse at Revolution Park, in Buckshaw Village, is home to TVS Supply Chain Solutions and the council were approached earlier this year over the sale that would see it leased back to the occupier for at least 15 years.

The deal, worth £33 million, will see the authority generate a profit of £400,000 per year, rising towards £1 million per year over the course of 15 years.

Councillor Alistair Bradley, Leader of Chorley Council, said: “With the huge cuts in government grant we have seen over the years if we are to continue to improve services for residents we have to generate our own income from commercial ventures particularly where that also supports our commercial sector and protects jobs.

“This deal came about in a similar way to the purchase of Market Walk, which has been a fantastic move for Chorley, with the imminent opening of the extension that will bring more visitors into the borough.

“As with any deal like this there is always an element of risk but we’re comfortable that it is an opportunity that we couldn’t turn down and it was supported by councillors of all parties who recognised the benefits to all residents of our borough.”

Logistics House is in one of the most sought-after locations in the North West with easy access to the M6, M61 and M65 motorways.

The deal came about with TVS, who previously owned the site themselves since moving in, in 2006, deciding to sell the building and lease it back in line with their company strategy for managing their assets.

“Income generation projects like this are more commonplace for local authorities which have had millions slashed from their budgets – we’ve lost £4million in government grant since 2014/15 including the elimination of Revenue Support Grant and the reduction and proposed removal of New Homes Bonus, a grant that councils receives when new homes are built,” said Councillor Bradley.

“The success of projects like Market Walk, which generates £1 million per year, means we have been able to keep council tax rises to a minimum and we’ve been able to make investment in major projects across the borough, such as the Croston flood relief scheme, which has recently saved hundreds of homes from flooding in the recent bad weather.”

TVS is part of a global logistics group based in India and with employees in over 50 countries throughout Asia, North America and Europe incorporating Coca Cola, Coors, Diageo, Electricity North West, Isuzu and Babcock among its clients.

Other national occupiers on Revolution Park include GA Pet Food Partners, Conair, Kimberley Clark, Parcel Force and Wolseley.