Canterbury City Council wants to buy a 50% stake in the Whitefriars shopping centre, it was revealed today.

A multi-million pound deal is being considered by the authority as it hopes to have a greater say in the future of the city centre precinct.

Whitefriars – which houses shops such as Fenwicks, Next and Tesco – was built on council land in 2005 and leased to Land Securities for 250 years.

The firm later sold the lease – half to TH Real Estate and the other half to the Canadian Pension Fund (CPF).

Together they pay the city council a ground rental charge on the land, but receive income by letting the shops to businesses.

Henderson manages the day-to-day letting for a fee, while the CPF – which approached the council about selling its stake – is considered a sleeping partner.

The city council hopes to buy the 50% using money borrowed on a low rate.

It predicts the extra rental income will cover the loan repayments and leave a surplus.

Councillors are being asked to approve the purchase, which would signal to the CPF the council’s intention to buy it.

However, there would then be a legal process to follow, the outcome of which is not guaranteed.

The council is unlikely to know if it has been successful until the summer.

Council leader Simon Cook said: "This is certainly not something we have considered on a whim and have taken some very heavy duty legal and financial advice over a long period of time and proceeded with caution before deciding to propose it.

"We have also taken into account the worse case scenario if there was an economic and retail slump. There is no question of us being sold a pup.

"As well as a good investment for the council, it will also give us a strong voice in influencing the future of Whitefriars, which is very important.

"It is a multi-million pound investment and we would use money from our own reserves as well as borrowing at a favourable rate from the government's public works loan board or elsewhere if we could get it cheaper.

"There has been cross-party discussion on this and everyone is perfectly satisfied that we have been open and above board."

Council chief executive Colin Carmichael added that the purchase would help ensure a "vibrant future" for the city centre.

He said: "Purchases of this nature do come with some risks, which the report sets out, but we are recommending to councillors that we pursue this deal.

“Whitefriars offers a high-quality shopping environment and we see it thriving in the years to come, so if councillors agree to this and we can successfully complete the process, it could be of significant benefit to taxpayers and everyone with an interest in Whitefriars.”

Also included in the potential purchase is the property Graylaw House, 20-22 Watling Street.

This building could help the council meet its aspirations to set up an office hub in the city centre, an objective that is included in its Corporate Plan.

The proposed purchase will be discussed at meetings of the council’s Policy and Resources Committee and Full Council on Thursday, April 21, at 6pm and 8.30pm respectively.

Some discussions may be held in private for reasons of commercial confidentially.