An Iceland store in the centre of Pontypridd has been acquired by Rhondda Cynon Taf Council.
The supermarket chain has four years remaining on its lease, which generates an annual rental income of £72,500.
The store extends to 13,000 sq ft, located at 50-53 Taff Street.
It has been acquired for £800,000 by the local authority which has a long-term strategy to bring significant new investment into the town.
The store is next to the under construction £38m Llys Cadwyn development (on the site of the former Taff Vale Shopping Centre).
The council has acquired the property investment from MVJ Capital, who were represented on the deal by the Cardiff office of property advisory firm Savills. The council represented themselves.
Ross Griffin, investment director at Savills, Cardiff, said: “We are pleased to have secured new owners for this town centre retail property on behalf of our clients. south Wales continues to provide investors with attractive opportunities across a range of lot sizes and asset classes.
"This asset will provide the local authority with further potential in their strategy of improving and upgrading the town centre.”
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Matthew Pearcey of MVJ Capital said: “After owning this asset for a number of years, the regeneration of the town centre made it a vital neighbour to a £38m office and leisure development that would totally change the face of Pontypridd and the local council were keen to acquire it and thus made the asset a sensible disposal.”
Connectivity to the town will be significantly improved with electrification of core Valley Lines.
When completed in 2023, Pontypridd Train Station will be able to accommodate 12 (both in and out) tram-train services an hour.
Llys Cadwyn will provide 130,000 sq ft of new space across three buildings.
The 1.9 acre development sits on the site of what was the 1960s built concrete eyesore, the Taff Vale Shopping Centre.
The new scheme is being taken forward by the local authority, which is utilising its own borrowing powers, following financial support from the Welsh Government to acquire the site.
The development's office element could up attract some 1,000 workers.
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It has already been confirmed that one of the buildings will serve as a new headquarters for the Welsh Government’s at arm’s length transport body, Transport for Wales.
Llys Cadwyn will also provide a new library, gym and other communities facilities.