Trafford Council borrowed £17.6 million to invest in four “prominent” properties in Manchester city centre.

The loan, taken on in August 2019 following a recommendation from the council’s investment strategy board, will have to be paid back over a period of five years and is secured against the value of the properties.

The properties, which are four office blocks on or around Albert Square in Manchester city centre, are expected to give the council at least a 3.75 per cent return on its investment – which would bring in £660,000 for the authority.

The move is part of the council’s asset investment programme and details of the loan were presented to the council’s accounts and audit committee meeting on Thursday night.

A Trafford Council spokesperson said: “The four properties are part of our investment portfolio, which provides a steady rate of return and enables us to invest more money into frontline services.

“The properties are four office blocks on or around Albert Square, Manchester, and are collectively known as the Albert Estate.

“The council has not bought the properties, but provided investment to the owner, which is secured against the properties.”

According to a report presented to the committee, the total value of all the council’s investments stood at £112.8 million as of September 30, 2019.

Last month, the council borrowed substantial funds from a government loans fund to purchase three shopping centres across the borough – Stretford Mall, Altrincham’s Stamford Quarter shopping centre and Altrincham’s Clarendon House.

The deal cost £50 million and the purchases were signed off in partnership with developers Bruntwood Works at the beginning of October.

But, according to council officers in a meeting this week, just two days before the council’s purchase of Stretford Mall was completed, the government’s interest rates on its loans more than doubled overnight.

So, officers said, while the investment in Stretford Mall is still expected to bring a return for the council and the taxpayer, it won’t be as sizeable as first predicted.