Canterbury City Council has completed its purchase of half of the city’s Whitefriars Shopping Centre in a £79 million deal.

It borrowed £74 million to acquire the city's premier retail precinct and is forecasting it will be able to earn income in shop rents.

Council leader Simon Cook said: “We’re very pleased that the negotiations have reached a successful conclusion.

"The deal has significant benefits for everybody, from local taxpayers to all those with a specific interest in Whitefriars."

The council borrowed the money at an interest rate of 2.6% with repayments of £4.05 million per year over 25 years.

It expects to be able to raise income above the repayment figure. Over the next four years, it will need to find savings of £5.8 million as its funding from central government is reduced.

Cllr Cook added: "We expect Whitefriars to make a contribution to council finances.

“Such is the quality of the offer in both Whitefriars and the city centre in general, that we are certain that Canterbury has a vibrant future.

"The Whitefriars deal is rather like a mortgage, a very big one.

"But the purchase is an entirely logical step for us to take and we look forward to playing our full part in decisions on the long term future of the shopping centre.”

The council, whose role will be one of a sleeping partner, bought the 50% share from the Canadian Pension Fund.

TH Real Estate, an investment management company which specialises in real estate equity, owns the other of the precinct.