COUNCIL bosses have approved plans to invest £125 million in the commercial property market.

Bournemouth council's cabinet made the decision on the 'Asset Investment Strategy' on Wednesday, although the funding must still be agreed by the full council.

The borough says the strategy, which would see it purchase property both within and outside the town, will raise revenue and reduce the impact of its loss of government funding.

At the meeting, members also agreed to recommend an asset purchase to the full council.

The discussion took place in private session for commercial reasons, and the council remains tight-lipped on the nature of the property.

A spokesman said: "Yesterday, cabinet recommended to full council on July 25 that it approves the purchase of an existing investment asset in Bournemouth.

"This purchase is entirely in line with the council’s Asset Investment Strategy.

"The details will need to remain confidential until the purchase has been approved and completed.

"If all goes to plan, we expect to be able to announce the details before the end of August.

"At the same time we will outline the positive impact of this purchase on the council’s finances."

The cabinet approved setting up an 'investment panel' comprising council leader John Beesley, deputy leader Nicola Greene and cabinet member for economic growth Philip Broadhead, as well as officers, to oversee the implementation of the strategy.

The scheme could see the council conduct joint purchases with other authorities, such as Poole. Members voted in favour of a joint staff structure for both councils at the same meeting.

It would also see cash borrowed at low rates from the Government's public works loan board to boost the council's buying power.

Offices, industrial buildings, shops, hotels, care homes and car parks are all under consideration for purchase. The council has said it is spreading its investments to avoid overexposure, with no more than 25 per cent in on sector.

Bournemouth says a £100m investment in commercial property will typically yield £1.5m of income a year, which could provide more than 10 per cent of the savings it needs to make by 2019-20.