BOURNEMOUTH council is set to strike a £300million deal with a private pension company to kick-start investment and regeneration projects in the town.

The long-term deal with Legal and General Property could provide the council with the money to build affordable homes and improve existing ones, offer mortgages to first-time buyers and fund new capital schemes, such as dementia care accommodation and special educational needs provision.

Cllr John Beesley, leader of the council, said: “This highly innovative proposal offers the opportunity of a low-risk, long-term partnership for both the council and our proposed partner, Legal and General Property.

“The council is committed to the long-term social and economic development of the town for the benefit of all those who live here, and is strongly supportive of schemes like this.”

A report going before cabinet members on Wednesday states that pension fund companies like Legal and General are keen to invest in triple A rated organisations like councils, particularly when Government bond yields are so low.

Pete Gladwell, head of public sector partnerships at Legal and General Property, said: “Legal and General is committed to seeking opportunities to invest its capital into communities where it can be used to deliver social benefit and growth.”

If cabinet approves the proposal, the next step will be to develop a pilot scheme worth up to £25m. This will probably be spent on redeveloping housing stock and associated regeneration work in Boscombe.