A Hampshire council has agreed to buy a retail park in a bid to generate up to £1 million a year for local services.

Work is due to start in the next week on Portsmouth Retail Park, in North Harbour, and is expected to be completed next spring.

Portsmouth City Council agreed to buy the £16.2million site, which will feature eight retail and food outlets and a gym on empty land next to Tesco Extra in Binnacle Way.

The first nine tenants of Portsmouth Retail Park are expected to be:

  • Decathalon
  • Subway
  • Costa
  • Greggs
  • Pure Gym
  • Home Bargains
  • Jollyes pet superstore
  • Explore Learning
  • Quality Pet Care

The council's property and investment manager Tom Southall said: "This is all about making money for the council - money that can be spent on the vital local services the council manages in Portsmouth.

"We are delighted to be forward funding an exciting new Portsmouth business development which will boost local jobs and strengthen the Portsmouth economy at the same time as generating rental income that can be used to pay for the things that matter most to the people of Portsmouth."

The development will be built by property solutions business Simons Group. Group director of development Graeme Cosgrove said: “We are delighted that Portsmouth City Council has seen the site’s potential and we are looking forward to working with them as developer and contractor as the site takes shape over the coming months.

"Simons has worked closely with the landowner to unlock this site and the space which will create this new investment, contributing to the viability and vitality of Portsmouth.”