HUNDREDS of shops, warehouses and freeholds owned by South-ampton City Council are to be sold off in an auction which could net the authority up to £9 million.

Finance bosses are expecting to raise so much money through ground rent on the new West Quay development that they can afford to sell off 1,524 properties across the city without losing out on income.

Properties earmarked for sale include pubs on housing estates, district shops, storage and industrial units, offices and electricity sub-stations to rights of way and gardens. Many are just freeholds, where the council still owns the ground and takes an annual rent, though some - like the pubs - are the buildings themselves.

None of these units earn the council much money - around £660,000 a year, and the council can raise more cash by selling them off, said Rodger Hawkyard, estates manager.

"The city council owns the whole of the West Quay site and ground rent will bring in extra money for the council. By selling off these properties and rents we will halve our property but lose just ten per cent of income, and we could raise up to £9 million by the sale."

The council currently owns nearly 3,000 properties across the city worth £55 million in total, which generate £5.65 million a year in income for the city coffers. But 90 per cent of this money is raised on just ten per cent of the properties.

The small income generated by the 1,524 properties earmarked for selling off will be recouped by West Quay, which is expected to earn the council more than £700,000 a year.

Councillor Richard Bates, head of performance and resources management, said streamlining the council's property portfolio was badly needed.

"Some lease terms were agreed back in the 1950s for a 125-year term so are in need of renegotiating because they are so low."

The proposed sell-off will be discussed by city councillors this afternoon.

Converted for the new archive on 25 January 2001. Some images and formatting may have been lost in the conversion.