Council cans £300m Wolves shopping centre

Grant Prior 11 years ago
Share

Plans for the £300m Summer Row shopping centre in Wolverhampton have been ditched after the local council decided not to save the scheme with public money.

The 600,000 sq ft city-centre development was first put on hold in December 2008 when a group of northern Irish investors withdrew funding from the project.

Wolverhampton city council had agreed to step in principle. But a detailed assessment of the risks involved by council officials has concluded that there were “too many financial uncertainties and risks” in investing public money in the scheme.

Plans included the compulsory purchase of 200 businesses by a deadline of next month to make way for the mall.

The council said taking out a £20m loan to buy the businesses is not feasible in the current economic climate.

Councillor Peter Bilson said: “We all wanted Summer Row to happen after years of work and planning and the council has gone right up to the wire to try and salvage the scheme before getting to this point.”

Belfast-based developer Multi Development had been looking for new financial backers since a consortium made up of contractor Lagan, MAR Properties and housebuilding firm Windsor pulled out in 2008.

Paul Sargent, at Multi Development UK, said: “Naturally, we are deeply disappointed at the council’s decision after six years working on Summer Row, but we are sympathetic with the council’s viewpoint in the current economic climate of uncertainty.”

Latest news

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
37 mins ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
40 mins ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
1 hour ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
1 hour ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
9 mins ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
21 hours ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
1 day ago

Balfour Beatty UK construction MD to step down

Tom Edgcumbe to depart after just over a year as MD construction services in England and Wales
1 day ago

Crest Nicholson trebles cladding retrofit provisions to £43m

House builder revises building safety retrofit costs in face of new Government guidance
1 day ago

BAM bags £110m refurb of iconic Covent Garden tower

Landmark Seifert-designed 15-storey Space House to get two extra floors
2 days ago

Winvic to start UK’s largest speculative shed

Ellesmere Port warehouse understood to be worth around £80m
1 day ago

Kier signs deal for £169m Luton hospital revamp

Main construction work to start this month and last until 2024
1 day ago

Willmott Dixon nabs £30m Kirklees police HQ

Work to start within next few weeks on regional police HQ
1 day ago

Kier reported to be in talks to buy Tilbury Douglas

Talks reported to be at an advanced stage between both boards
2 days ago

Finance sealed for next-generation London office job

Goldman Sachs takes stake in London Bridge office project
2 days ago

John F Hunt starts giant clean-up on £110m Walsall site

Land remediation work at contaminated site will take two years
2 days ago

Build to rent boom lifts Watkin Jones profit to £52m

Surging build to rent market lifts development pipeline to £1.8 billion
2 days ago

HS2 awards £310m station lifts and escalators deal

TK Elevator signs 160 lifts and 130 escalators deal for four stations
3 days ago

Robot cutter set to revolutionise paving jobs for Eurovia

Automated system will spell end for noisy slab cutting on busy sites
3 days ago

First mass built carbon negative homes get underway

St Modwen first volume developer to build affordable carbon-negative homes
3 days ago

GMI Construction names new CEO

Lee Powell takes helm as CEO at GMI Construction in growth push
3 days ago

514-home London scheme clears final hurdle

Inland Homes declares victory after three-year planning battle over Hillingdon Master Brewer site
3 days ago

Henry Construction wins £30m Clarion housing scheme

Ravensbury estate regeneration in Mitcham is Henry's first project for Clarion
3 days ago

Lovell lands £700m homes deal with Suffolk council

Development joint venture will see at least 2,800 homes built across the county
3 days ago

Ballymore pulls 51-storey tower plan amid fire safety concern

London Fire Brigade raises concern about single staircase and fire strategy
6 days ago

New work surges as materials shortages ease

Mild weather and easing of supply chain bottlenecks lifts new work 5.7%
6 days ago

PDR Construction goes into administration

All staff made redundant as suppliers owed millions
7 days ago

Brick-laying robot gets approval from NHBC

Robot can now be used in construction of new homes covered by NHBC warranty
6 days ago

Temporary visa scheme needed for London sites

Mayor of London demands action over site skills shortages
7 days ago

Construction worker dies after fall from mobile tower

Court hears how tower wasn't configured correctly
7 days ago

Contractor services