Power wise it will tow without issue. I also agree the turning circle is as big as the Titanic's, but you get used to it. However, you will probably find that the back end is sitting like a 'duck's b.m' with 70kg noseweight, as the suspension is quite soft. You really need to swop the shockers for Nivomats which are self levelling and worth their weight in gold for easier towing. Rear leg room is not as good as the S80, but as a medium sized car it is excellent. Just make sure it has a full Volvo service history and if the mileage is anywhere near 70000 get the timimg belt changed. I know Volvo specify later, but it is not worth the risk.
Tow bars can be suplied by many Companies, however the Volvo one will allow the dash trailer lights to operate. Others use a beeper in the boot.