Own an Italian castle

Private investors will be given leases of up to 50 years on the historic properties in return for converting them into hotels.

Italy is to offer a portfolio of publicly owned castles, monasteries, palaces and lighthouses to the highest bidder in an attempt to improve its finances.

Private investors will be given leases of up to 50 years on the historic properties in return for converting them into hotels.

The Government hopes that the scheme will make more than 2 billion ($3.2 billion) by 2017.

The collection of 686 properties includes Bourbon fortresses, stone watch towers, disused army barracks and convents. The Government expects there to be particularly keen interest in the 10 lighthouses, many of which command magnificent views of beaches and bays on remote islands or isolated coastlines.

They include the lighthouse of San Domino, which the Government admits is in poor condition, on the Tremiti archipelago of islands in the Adriatic. In Sardinia, a long-term lease will be offered on the Capo Comino lighthouse near the town of Nuoro, which was built in 1903 and operated by the Italian navy before falling into disrepair.

The auction of the properties is being handled by the Agenzia del Demanio, or the Agency of State Property. "These are treasures of Italy's national heritage," a spokesman said. "We are not selling them off, just offering long-term concessions on them. The leases will be for a maximum of 50 years. A lot of them need substantial restoration."

The idea of selling off historical properties has been considered, but the initiative has been given fresh impetus by the agency's new director, Roberto Reggi, who experimented with the concept during 10 years as Mayor of Piacenza in northern Italy.