The council aims to set up a local asset backed vehicle (LABV), into which the council will commit land and buildings.
Its contribution will then be matched with cash or assets from the private sector partner.
The development will focus on several key sites in Torquay and Paignton and possibly Brixham Town Centre.
Five sites have been highlighted for the first phase of development. These are the Victoria Centre and Station Lane, in Paignton, and the Terrace car park, Union Street and the Castle Circus area in Torquay.
The council believes that the sites could be turned into a range of leisure, office, retail and residential developments.
Further sites have been identified for a second wave of developments. The local authority said that the list of sites may increase, but added that it would not transfer ownership of any site until an acceptable scheme has been agreed with planning permission.
Bidders will be shortlisted in July and PQQS are available on request from Knight Frank’s main London office.
Chris Lewis, Torbay Council’s cabinet member for regeneration, said: “This formal partnership is the best way of delivering different regeneration projects across Paignton and Torquay town centres when the economy is at its weakest and investors are difficult to attract.
“We hope it will generate interest from an experienced, big name developer and help put the Bay on the map for investment.”