BOURNEMOUTH council has agreed to buy another retail site.

The Echo understands from sources outside the council that it is close to completing on the purchase of the leasehold of the shops and offices beneath the Avenue Road car park in Avenue Road.

It will be the second major purchase made under the borough's £125 million asset investment strategy, although the total cost has not been revealed.

The council has declined to confirm the identity of the site for commercial reasons, claiming it might lead to an increase in price.

At a cabinet meeting on Wednesday where the purchase was agreed, Councillor Philip Broadhead, cabinet member for economic growth, said: "This investment opportunity provides further regeneration opportunities for the council as well as a very good yield.

"We anticipate that it will be completed very swiftly, within four weeks.

"In terms of the price, it is not very big at all by the standards of investments we have looked at."

He said the borough already owns the freehold to the site and would be buying the leasehold with cash borrowed from the Public Works Loan Board. It already owns the multi-storey car park above.

The cash made by the site, he said, would help "protect front line services".

"Bournemouth is in the bottom 10 per cent of comparable authorities in terms of borrowing," he said.

The council last year used £49m to buy the Mallard Road retail park as part of its investment strategy.

It has maintained that the purchase was a sound decision despite problems faced by some tenant stores, including Homebase and Carpetright.

It said the opening of an Aldi superstore had brought new customers to the site, on which it makes money by collecting rent.

Cllr Broadhead told the Echo the new purchase was "not mind-blowing" and there were no short-term plans to make changes on the site as "at the moment it generates good value".

However he said: "It does give us options for a relatively key position in the town."

Cabinet documents describe the purchase as "a mixed-use town centre office, retail and car park" site.

The report also notes that despite "concerns raised by the press and financial institutions", the Government "continues to support the use of prudential borrowing in support of the local economy".