AN offer has been made to lease an empty council-owned property last used as an Italian restaurant in Lytham.

The former Prezzo restaurant in St Anne’s Road, which is owned by Bury Council, has been vacant since early 2018.

The property has been costing the local authority £12,000 per year in running costs since its last tenants left.

It is one of four properties located outside of the borough which the council owns with the intention of making a return on their investment.

The restaurant in Lytham, which was purchased for a million pounds in 2015, had been bringing in around £60,000 per year for the council’s coffers while it was occupied.

Newly-appointed Conservative group leader, Cllr Nick Jones, welcomed the news that the property lease is under offer but questioned the viability of the council’s investments in general.

He said: “It is concerning that we have investments outside of the borough which are not generating any income whatsoever. We are a council not a property speculator.

“The property in St. Anne’s has been vacant for over a year with the loss of rental income and the council having to pay circa£12,000 per year in running costs. Whilst I welcome that the property lease is under offer, for far too long the council has incurred losses on this investment which we may struggle to recoup.”

Bury Council bought Capita Regional Office HQ in Huddersfield for £2.4m and the investment has generated a net income stream of just over £130,000 per year in the last three years.

The local authority also paid £2.5m to PJD Property Co for a restaurant, dentist surgery and training centre in Manchester’s Lever Street in 2016.

This property generated a net income on £165,000 last year and is on track for a similar figure this year.

Earlier this year the council agreed to buy the Istanbul Restaurant in Bury New Road as part of its regeneration plans for Prestwich.

The acquisition comes at a capital cost of around half a million pounds to the council.

The Turkish restaurant could be knocked down to allow a central plaza to run between the high street and Metrolink stop.

Cllr Nick Jones added: “To date we have still not seen any detailed plans apart from headlines ‘Prestwich Regeneration’. The regeneration of Prestwich and the Longfield Suite is key to the success of the town. This Labour administration have continually made poor investment decisions and the value for money question remains.”

Defending the council’s investment strategy last year, the council’s cabinet member for finance and housing, Cllr Eamonn O’Brien, said that the acquisitions were funded by contingency reserves which the council cannot spend on day-to-day services.

He claimed that the return on these investments is, on average, 10 times what the council would get if it left this money in a bank.

The Q-Park car park in Knowsley Street, opposite Bury town hall, has generated a net income stream of between £94,000 and £129,000 per year for the council in the previous three years.