The deal, known as a Local Asset Backed Venture, will see the council place a series of properties that it owns into a joint venture with a private developer. These properties currently provide the council with around £4 million a year but are in need of renovation or replacement.
The private partner will provide funding of a value equal to that of the properties to carry out this redevelopment, with both partners sharing in the profits that result from the work.
Aylesbury Vale is following in the footsteps of Croydon Council, which recently signed a £450 million rated deal with John Laing to rebuild a series of its properties using the approach. The model is now being considered by a series of other local authorities around the country.
The Aylesbury Vale deal is expected to last 20 years following the appointment of a partner by summer 2009.