Councillors have agreed to purchase Shrewsbury’s three main shopping centres, with Shropshire Council aiming to complete the deal in January.
The Pride Hill, Riverside and Darwin shopping centres will be purchased from UK Commercial Property Trust at a cost in the region of £60 million.
Shropshire Council says the purchase would support the economic growth and regeneration of Shrewsbury town centre.
Profits made from the shopping centres would be used on vulnerable adults and children’s services, according to the council.
The council has been in discussions with the owners and managers of the shopping centres for a number of years to encourage investment and redevelopment. The council says it is crucial to enhancing the visitor, retail and leisure experience offered in the Town Centre.
The discussion has focussed on the future development of the shopping centres and how they could be linked together to form a more attractive offer to shoppers.
In particular, the Riverside Shopping Centre comprises a well-located site close to the River Severn, but requires significant redevelopment.
In 2016, the owners made it clear that they were looking to sell the shopping centres, as opposed to entering into any partnership arrangement with Shropshire Council.
Cabinet received a confidential report on 12 July 2017. This report set out the opportunity for Shropshire Council to purchase the shopping centres. At this meeting Cabinet resolved “that the Director of Place and Enterprise in consultation with the Portfolio Holder for Corporate Support be authorised to formally express an interest to the freeholder to acquire the shopping centres subject to contract”.
Following a competitive procurement process, Montagu Evans and Browne Jacobson were appointed in August 2017 to provide, respectively, specialist technical property and legal advice to Shropshire Council. Work began on the potential acquisition in September 2017.
Shropshire Council aims to complete the purchase by 23 January 2018.
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